Microsoft Layoffs Target Sales Roles Amid AI Push
What is the reason for Microsoft Layoffs?
Microsoft is reportedly planning another significant round of layoffs this time, targeting thousands of employees, with a focus on sales roles. According to Bloomberg News, the cuts are expected as part of broader internal restructuring efforts.
The company is streamlining its operations to support its massive investments in artificial intelligence (AI). Microsoft has been pushing to maintain a leading edge in the tech space, especially as more companies adopt AI-driven tools and services.
How Many Jobs Are Affected?
While exact numbers haven’t been confirmed, this follows a previous round of layoffs in May that impacted roughly 6,000 employees. The latest round is expected to be in the thousands as well. The announcement is expected early next month, shortly after Microsoft wraps up its fiscal year. However, the timing could still shift. Although sales teams appear to be the main group impacted, the layoffs may not be limited to them. The report notes that other departments could also face cuts.
What’s Driving This Restructuring?
Microsoft is ramping up its AI infrastructure and services. The company has committed to spending $80 billion this fiscal year primarily to expand data centre capacity and support the growing demand for AI-powered solutions.
Amazon CEO Andy Jassy recently indicated that generative AI and automation could reduce Amazon’s corporate workforce over the next few years. Microsoft’s approach appears to be part of a wider trend across the tech industry. Microsoft has declined to comment publicly on the reported layoffs at this time.
Were You Affected by the Microsoft Layoffs?
If you’ve recently been let go as part of Microsoft layoffs you may be entitled to more than a standard severance package.
In Ontario, non-unionized employees particularly those in tech, sales, or corporate role could qualify for significantly more compensation than initially offered. Severance entitlements depend on factors such as your age, length of service, position, and compensation. In many cases, you may be owed up to 24 months’ pay.
At Whitten & Lublin Employment Lawyers, we’ve successfully represented professionals in the tech and corporate sectors. If you’ve been impacted by Microsoft layoffs, contact us at (416) 640 2667 or connect with us online for a consultation.