Microsoft is poised for further layoffs,signaling a strategic shift driven by AI investments. Sources reveal that these cuts may predominantly impact sales teams, although other departments could also see workforce reductions. Previously, the tech giant slashed 6,000 jobs in May, highlighting organizational changes. concerns arise as the company increasingly outsources sales to third-party firms. News Directory 3 reports from Redmond,Washington,that the upcoming declaration may coincide with the fiscal year’s close. The company has faced critically important layoffs in the past. The timing raises questions about the human cost against billions in reported revenue. Discover what’s next as Microsoft navigates the evolving artificial intelligence landscape.
Microsoft plans Further Layoffs Amid AI Investment Push
Updated June 18, 2025
Microsoft is reportedly preparing for another round of layoffs, potentially impacting thousands of employees, as the company increases its investment in artificial intelligence. The Redmond, Wash., tech giant previously cut 3% of its workforce, or about 6,000 employees, in May, citing a need for organizational changes in a dynamic market.
Sources indicate that the upcoming Microsoft layoffs will primarily affect sales teams. Though, other departments may also experience workforce reductions.The timing of the announcement remains subject to change.
In april, Microsoft announced a shift toward relying more on third-party firms to handle software sales to small adn medium-sized businesses. The exact number of employees affected by this strategic shift remains unclear. Even a single-digit percentage layoff would impact thousands of professional careers.
Earlier this year, in January 2023, Microsoft eliminated 10,000 positions, representing 5% of its workforce at the time. Engineering and product teams bore the brunt of the May 2025 layoffs. The January cuts heavily impacted teams, including those focused on Mixed Reality (MR) efforts.
The timing of the potential announcement is noteworthy, as it could occur shortly after the close of Microsoft’s fiscal year at the end of June. The company continues to report billions in revenue each quarter, raising questions about the human cost of profit.
What’s next
Industry analysts will be watching closely to see how these potential layoffs impact Microsoft’s ability to compete in the rapidly evolving artificial intelligence landscape. The company’s next earnings report will provide further insight into its financial performance and strategic direction.
