Microsoft is reportedly preparing to lay off thousands of employees in its global sales division by the end of June 2025. The move is part of a larger corporate restructuring effort that aligns with the company’s push toward greater integration of artificial intelligence. The layoffs are expected to coincide with the end of Microsoft’s fiscal year on June 30 and follow a similar trend seen in previous years. Sources close to the matter told Bloomberg that this round of cuts will specifically target the sales department, although official confirmation from Microsoft is still pending.
This announcement comes just weeks after Microsoft eliminated around 6,000 positions across various departments in May, impacting teams in engineering, marketing, and customer support. The latest round would mark the second significant workforce reduction in less than two months and is expected to hit one of the company’s largest segments. Currently, Microsoft employs approximately 228,000 people globally, with the sales and marketing division accounting for about 45,000 of those roles.
While Microsoft has not explicitly linked the layoffs to its artificial intelligence strategy, industry experts suggest that the shift toward AI-led tools and automation is having a visible impact. Microsoft’s recent internal research indicates that smaller, AI-powered teams could soon become standard across various business functions. This potential staffing model is reshaping how companies view roles traditionally reliant on human labor, particularly in areas like sales and customer service.
Over the past year, Microsoft has rapidly expanded its AI portfolio, largely through its multibillion-dollar partnership with OpenAI. AI tools such as Copilot for Microsoft 365 and services on Azure are now widely adopted, allowing for increased automation in client interaction, workflow management, and data analytics. Analysts believe that these innovations may reduce the demand for large sales teams, driving Microsoft’s shift to a leaner workforce structure.
If implemented, the latest job cuts would reinforce a growing trend across the tech industry, where automation and AI are steadily replacing legacy models. As Microsoft continues to lead the AI race, this strategic transformation reflects a broader realignment in how major tech firms are streamlining operations to stay competitive. For affected employees, however, the restructuring signals a tough start to the summer and a challenging period of transition.
