Microsoft is about to cut thousands of jobs

A Microsoft store in New York (USA). Photo: Bloomberg .

Microsoft is planning to cut thousands of jobs, mostly in its sales division, according to Bloomberg . The move comes after the company invested heavily in artificial intelligence (AI).

The decision to cut is expected to be announced by Microsoft in early July, after the end of the most recent fiscal year. Internal sources said the staff reduction will not stop at the sales department, and the announcement date may change.

If the information is accurate, this is the next round of staff cuts by Microsoft after laying off 6,000 employees in May. At that time, the product and engineering departments were hit the hardest, affecting high-touch positions such as sales and marketing.

In April, Microsoft informed employees of its plans to use third-party partners to handle the process of selling software to small and medium-sized business customers.

Microsoft said it regularly reviews its organizational structure to ensure growth targets. While the company is investing tens of billions of dollars in servers and data centers, its leaders confirmed that they will tighten spending on other activities.

Microsoft had about 228,000 employees at the end of June 2024, including 45,000 in sales and marketing. The company typically restructures its divisions and announces major changes at the end of its fiscal year, which ends in June.

Not just Microsoft, WSJ said companies in many fields, from retail to pharmaceuticals, have sought to streamline employees, using technology for some operations. On June 17, Amazon CEO Andy Jassy announced plans to cut staff in the coming years, the reason being that some roles are no longer needed due to AI support.

Microsoft also sells AI tools to customers to automate some tasks. In January 2023, the company cut 10,000 jobs after a pandemic-induced hiring spree. Microsoft also downsized its video game division last year after acquiring Activision Blizzard.

“We continue to focus on building high-performing teams, eliminating layers to improve operational agility,” Microsoft CFO Amy Hood said in April.

Source: https://znews.vn/microsoft-sap-cat-giam-hang-nghin-viec-lam-post1561993.html