Microsoft Prioritises AI, Cuts Jobs

Microsoft is reportedly planning further job cuts, particularly impacting the sales division, as the company increases its investment in artificial intelligence. This strategic shift involves reallocating resources towards AI development, influencing the composition of its workforce. The cuts may be announced in early July, following the end of Microsoft's fiscal year.

These potential reductions follow a previous round of layoffs in May, which primarily affected product and engineering positions. Microsoft's increased spending on AI has reportedly weighed on profit margins, leading to cost-cutting measures. The company is investing billions in expanding data centres to enhance its AI computing capabilities.

Microsoft had over 228,000 employees as of June 2024, with 45,000 in sales and marketing. The company is also considering using third-party firms to manage software sales for smaller clients. These adjustments reflect Microsoft's ongoing efforts to streamline operations and focus on AI-driven growth.