Microsoft Reportedly Eyes Sales Staff for Next Round of Cuts After May's 6,000 Layoffs

After slashing 6,000 jobs in May 2025, Microsoft's workforce is bracing for another shake-up as the tech giant is reportedly planning more layoffs in thousands.

This restructuring is being done to streamline operations so as to stay competitive in a fast-evolving market with the company pouring billions into artificial intelligence (AI).

Streamline Operations Amid AI Boom

Microsoft's latest move comes is no surprise to industry watchers. The company is funnelling massive investments, £60 billion ($80 billion) in fiscal 2025 alone, into AI-enabled data centres to cement its leadership in the AI race.

According to Reuters, these layoffs, primarily targeting salespeople, aim to trim costs while redirecting resources to high-growth areas like cloud computing and AI development.

This follows a pattern: in May, Microsoft cut 3% of its 228,000-strong workforce, citing the need to 'reduce management layers' and boost efficiency.

The tech sector's broader trend of leveraging AI to optimise operations is clear, but it's leaving employees vulnerable.

Posts on X reflect growing unease, with users speculating that up to 8,000 jobs could be axed by 2 July 2025, impacting entire sales organisations.

While these figures remain unconfirmed, the sentiment underscores a broader fear: AI's productivity gains are reshaping roles faster than workers can adapt.

Navigate Economic Pressures Ruthlessly

The timing of Microsoft's job cuts isn't random. Despite reporting £19.4 billion ($25.9 billion) in quarterly net income in April 2025, the company faces pressure to maintain profit margins amid economic uncertainty.

CNBC notes that Microsoft's earlier layoffs in January 2025 targeted underperforming staff, but this round is structural, not performance-based.

The goal? Flatten hierarchies and sharpen focus on Azure cloud services, which have shown slower-than-expected growth outside AI-related segments.

Other tech giants are following suit. Amazon and CrowdStrike recently announced layoffs to eliminate 'unnecessary layers', signalling a sector-wide push for leaner operations.

Microsoft's sales teams, often seen as critical for enterprise deals, may now face automation-driven efficiencies, with AI tools handling tasks once reserved for human expertise.

This shift raises questions about the long-term viability of traditional sales roles in tech.

Brace for Workforce Morale Fallout

The human toll of these layoffs can't be ignored. Bloomberg reports that Microsoft's latest cuts, expected in July 2025, have already dented morale, particularly in sales divisions.

The company's earlier reduction of 300 jobs in June 2025, affecting roles from software engineers to lawyers, hints at the breadth of this restructuring.

Employees who remain face heavier workloads, with some X users claiming that AI-generated code is increasing productivity but also creating cleanup tasks for developers.

For Microsoft's leadership, balancing AI innovation with workforce stability is a tightrope walk. CEO Satya Nadella has championed AI as a growth engine, but repeated layoffs risk alienating talent in a competitive market.

As the company navigates this transition, it must address concerns about over-reliance on AI at the expense of human capital.

Microsoft's AI Bet Reshapes Futures

Microsoft's pivot to AI is bold, but it's not without risks, or costs. By targeting sales staff for its next round of layoffs, the company is doubling down on efficiency to fund its £60 billion ($80 billion) AI gamble.

The tech industry's watching closely, and so are its workers.

As AI reshapes roles and redefines productivity, Microsoft's challenge is clear: innovate relentlessly, but don't lose the people who power the machine.