Microsoft to lay off thousands more workers just a month after cutting 6,000 jobs

Microsoft is preparing another round of layoffs, this time targeting thousands of workers, with sales teams likely to be among those affected, according to a report from Bloomberg News. The cuts are expected to be announced in early July, after the company wraps up its fiscal year.

This comes just a month after Microsoft laid off around 6,000 employees, continuing a pattern of workforce reduction as the company doubles down on its AI ambitions.

Early this month, the Redmond-based tech giant also laid off more than 300 workers in what the company calls another round of “organizational changes.”

Microsoft Layoffs: To Cut Thousands of Jobs Amid $80B AI Push

While sales teams are expected to be hit, the cuts won’t be limited to them, and the timing could still shift, the sources told Bloomberg.

“The cuts are expected to be announced early next month, following the end of Microsoft’s fiscal year, according to people familiar with the matter. The reductions won’t exclusively affect sales teams, and the timing could still change,” Bloomberg reported, citing the people who requested anonymity to discuss a private matter.

Microsoft has been pouring money into artificial intelligence, betting big on its role in the future of tech. The company plans to spend $80 billion this fiscal year, most of it going toward building and upgrading data centers to support growing demand for AI services.

The shift isn’t isolated to Microsoft. Amazon CEO Andy Jassy said Tuesday that generative AI and autonomous agents will lead to a leaner corporate workforce over the next few years. In both cases, the message is clear: AI is driving big changes not just in products but in headcount too.

The upcoming layoffs won’t be limited to sales and could change in timing or scope, the report noted. Microsoft declined to comment.

As of last June, the company had 228,000 employees. That number could shrink further as the company reshapes itself around AI.