Microsoft Plans Another Round of Layoffs

Sources indicate that Microsoft is gearing up for another series of job cuts, targeting thousands of positions, particularly within the sales department.

According to reports, the tech giant is expected to announce these layoffs in early July, coinciding with the close of its fiscal year. While the primary focus appears to be on sales roles, other departments might also face reductions. However, the specific timing of these announcements could shift.

This news follows a recent wave of layoffs in May, which saw 6,000 employees, mainly in product and engineering, let go. Notably, sales and marketing roles were largely untouched during that round of cuts.

In April, Microsoft signaled its intention to lean more on third-party companies for software sales to small businesses, hinting at potential future reductions in its sales workforce.

As Microsoft continues investing heavily in AI and significantly increasing spending on data centers and servers, executives have informed Wall Street about the company’s careful management of expenditures in other areas. The organization is said to regularly assess its structure to ensure resources are being allocated efficiently for growth.

As of June 2024, Microsoft employed around 228,000 people, with 45,000 in sales and marketing roles. The company historically tends to restructure teams and announce changes around the fiscal year’s end.

Previously, there were reports of a significant layoff in January affecting Microsoft’s security department.

An insider noted that notifications about job cuts were sent to employees in the security unit earlier this week. This division, under the leadership of Charlie Bell, who previously headed Amazon’s cloud services, has been pivotal in Microsoft’s cybersecurity initiatives since 2021.