Microsoft Plans Layoffs Targeting Sales Teams

Microsoft is gearing up for another round of layoffs, with plans to cut thousands of jobs with a specific focus on its sales workforce, according to people familiar with the matter.

Bloomberg reports that technology giant Microsoft is preparing to trim its workforce once again, with the latest round of job cuts expected to be announced in early July, following the close of the company’s fiscal year. Sources close to the situation revealed that the layoffs will predominantly impact sales positions, although other teams may also be affected. The exact timing of the announcement could still change.

This news comes on the heels of a previous wave of layoffs in May, which involved 6,000 employees losing their jobs, primarily in product and engineering roles. The customer-facing positions, such as sales and marketing, were largely spared during that round of cuts.

In April, Microsoft informed employees of its intention to rely more heavily on third-party firms for the sale of software to small and medium-sized businesses, potentially foreshadowing the upcoming reductions in the sales force.

As Microsoft continues to invest heavily in AI, spending tens of billions of dollars on servers and data centers, executives have pledged to Wall Street and cautioned employees that the company will maintain a tight grip on spending in other areas. The company has stated that it regularly assesses its organizational structure to ensure it is allocating resources effectively for growth.

At the end of June 2024, Microsoft had a total of 228,000 employees, with 45,000 of them working in sales and marketing positions. The company has a history of restructuring teams and announcing other organizational changes near the end of its fiscal year.