Report: Microsoft to Lay Off Thousand of Employees Early Next Month

Microsoft is reportedly planning to lay off thousands of employees early next month following the closure of its 2025 fiscal year. According to a report from Bloomberg citing people familiar with the matter, the layoffs will mostly impact sales team, though the timing of the announcement could still change.

In May, Microsoft already laid off 3 percent of its workforce, with the job cuts affecting approximately 6,000 people. In January, the company also laid off employees working on security, experiences and devices, sales, and gaming.

It’s not uncommon for Microsoft to axe jobs or sunset unprofitable services at the beginning of a new fiscal year. Currently, the company is also investing heavily in developing its AI infrastructure, and it is on track to spend over $80 billion on AI-enabled data centers during its 2025 fiscal year.

Unfortunately, Microsoft’s recent job cuts in May primarily affected software engineers, as up to 30% of the code for some of the company’s projects is now being written by AI. And the Redmond giant isn’t the only Big Tech company to reduce its workforce amid the ongoing AI boom.

In a note to employees shared on Tuesday (via the Wall Street Journal), Amazon CEO Andy Jassy said that AI developments will force the company to adapt its structure in the coming years. “As we roll out more Generative AI and agents, it should change the way our work is done,” he said. “It’s hard to know exactly where this nets out over time, but in the next few years, we expect that this will reduce our total corporate workforce.”