Microsoft Set to Slash Sales Jobs Amid AI-Driven Restructuring by June-End

Microsoft is reportedly preparing for another significant round of job reductions, this time targeting its sales division. As per a Bloomberg report, the company plans to eliminate thousands of roles by the end of its fiscal year on June 30.

Although Microsoft hasn't officially announced the layoffs, the timing mirrors the company’s long-standing trend of reorganizing operations toward the close of its financial year. This move comes just weeks after Microsoft laid off approximately 6,000 employees across various departments in May, representing around 3 percent of its global workforce.

Sources indicate that the upcoming layoffs will primarily impact the sales organization, one of Microsoft's largest departments. As of June 2024, the tech giant employed about 2,28,000 people globally. Among them, around 45,000 worked in sales and marketing—trailing only behind the operations and research divisions.

While the company has not directly linked these cuts to its growing investments in artificial intelligence, analysts suggest the shift is part of a broader industry trend. Automation and generative AI are transforming the nature of work, especially in traditional human-centric roles such as sales, support, and administration.

A recent internal Microsoft paper noted, “Many enterprises are re-evaluating legacy structures in favour of more agile, AI-enhanced approaches.” Though the report did not reference specific staffing changes, it hints at a future defined by smaller, AI-augmented teams.

Microsoft has been doubling down on AI innovation, embedding intelligent features across its offerings—from Azure and Microsoft 365 to the Copilot assistant. The transformation is also tied to the company’s high-stakes investment in OpenAI, positioning it at the forefront of the generative AI revolution.

For many employees in the affected divisions, the news—if confirmed—could mark an unsettling transition. As Microsoft leans into a more streamlined and AI-centric operational model, the human cost is becoming increasingly evident.

This restructuring echoes a larger shift across the tech landscape, where firms aim to drive productivity and cut costs by integrating AI deeper into everyday business functions.