Microsoft is preparing for another significant round of layoffs, with reports indicating that thousands of employees will be impacted. The move comes just weeks after the company laid off nearly 6,000 workers in May, marking its third major workforce reduction this year.
This new wave of job cuts is expected to begin in early July, following the end of Microsoft’s fiscal year. While an official number has not yet been confirmed, sources say the layoffs will heavily affect the company’s sales and customer support divisions, though other departments may also see reductions.
The restructuring reflects Microsoft’s strategic realignment as it ramps up investment in artificial intelligence and cloud infrastructure. The company plans to invest nearly $80 billion in AI-related development in the current fiscal year, signaling a major shift in its business priorities.
According to insiders, these layoffs are part of Microsoft’s broader goal to streamline operations and double down on emerging technologies like AI, which are seen as essential to the company’s future growth.
Employees affected by the layoffs are expected to receive severance packages and career transition support. The news follows similar workforce cuts at other tech giants including Amazon, Meta, and Google, all of which are realigning their business models around AI capabilities.
Microsoft has not yet released an official statement regarding the July layoffs, but internal sources confirm that announcements could come as early as the first week of the month.
