Microsoft is under pressure: thousands of sales jobs are at risk!

Microsoft is under pressure: thousands of sales jobs are at risk!

Microsoft is again planning extensive layoffs, which are expected to be implemented in July 2025 at the end of the fiscal year. According to a report by The shareholder Thousands of sales jobs could be eliminated to adapt to changing market conditions. These steps are in the context of a strategic shift towards artificial intelligence (AI) technologies.

Microsoft had already made significant job cuts in 2023. In March, almost 2,000 employees were laid off for “performance reasons”. An additional reduction of almost 7,000 employees in May, which represents three percent of the total workforce, particularly affected the product and development departments. These measures were justified by the reduction of management levels and structural adjustments.

Strategic realignment

In April 2023, Microsoft announced that it would increasingly rely on third-party providers in sales for small and medium-sized customers. The sales area last had around 45,000 employees in June 2024 and is now the focus of the upcoming restructuring. CEO Satya Nadella has announced plans to invest $80 billion in fiscal 2025, primarily to develop AI-powered data centers.

Nadella sees developments in artificial intelligence as a revolution comparable to the rise of the cloud business. With this realignment, Microsoft plans to respond to the growing demand for modern technologies and prepare for the future.

The coming wave of layoffs shows that Microsoft is prepared to take drastic measures to remain competitive. The extensive measures draw attention to the challenges and opportunities associated with rapid advances in AI. Further details on the announced changes and their impact on the workforce can be found in the reports from Manager Magazine to find.