Microsoft to Cut Thousands of Jobs as AI Investments Grow

tech360.tv
Jun 19, 2025
1 min read

Microsoft is preparing to cut thousands of jobs, with many expected in its sales division, as it continues to invest heavily in artificial intelligence, according to a Bloomberg News report.

Microsoft sign with colorful squares outside a modern building under a clear blue sky. The setting conveys a professional atmosphere. — Credit: MICROSOFT

The layoffs are anticipated to be announced early next month, following the end of Microsoft’s fiscal year. The timing and scope of the cuts may still change, and the reductions will not be limited to sales roles.

Person photographs a woman on a retro couch in a 'Microsoft' display. The backdrop is brown with orange stripes, evoking a vintage vibe. — Credit: MICROSOFT

This move follows a previous round of layoffs in May, which affected about 6,000 employees.

Microsoft is increasing its focus on AI, aiming to strengthen its position as industries adopt the technology to stay competitive. The company has allocated USD 80 billion in capital expenditure for this fiscal year, primarily to expand data centres and address capacity issues for AI services.

As of June last year, Microsoft employed 228,000 people.

Microsoft plans thousands of job cuts, mainly in sales
Layoffs expected after fiscal year ends next month
Previous round in May affected 6,000 employees

Source: REUTERS