Microsoft is reportedly preparing to eliminate “thousands of jobs” early next month, with sales teams most heavily affected according to a Bloomberg-sourced report. The shift follows the company’s strategy of outsourcing sales functions, alongside a broader reallocation of resources toward artificial intelligence initiatives—seen as one of the primary drivers behind the reduction. These looming cuts will not be an isolated event; Microsoft previously laid off roughly 6,000 employees in May (3% of its workforce) and another 305 in June. Earlier in the year, performance-based cuts reduced the headcount by under 1%, while in January 2023 the company eliminated approximately 10,000 jobs (about 5% of its workforce at the time).
Despite its ongoing profitability — reporting Q3 FY25 revenue of $70.1 billion (up 13% year-over-year) and net income of $25.8 billion (up 16%) — Microsoft is proactively streamlining its operations ahead of its June 30 fiscal year close. The company’s global workforce decreased from about 235,000 employees in January to approximately 228,000 by June 2025. The move signals Microsoft’s pivot toward AI and its strategy to reduce middle management and non-core staff, a trend mirrored across the tech industry as giants like Intel also announced significant layoffs.
Source: Report: Microsoft set to slash thousands more jobs in July — sales teams in the crosshairs
