In a third round of layoffs at Microsoft this year, at least a 1000 jobs are expected to be cut, primarily affecting sales and marketing divisions.
It has been evident in recent times that Microsoft is keen to increase focus on artificial intelligence (AI) and is investing in that area. Media reports say the company has set aside about $80 billion to be invested in setting up AI data centres.
Earlier layoff rounds affected the software and product teams but this time the sales and marketing will reportedly see the maximum impact. About 6,000 employees were let go in May, while 300 more were laid off not long after in a second round.
The company has already begun to outsource the sale of software to third-party firms for the smaller clients.
The ‘restructuring’ exercise is expected to continue. However, the exact number of employees to be affected is yet to be officially revealed.
Following the first round of cuts earlier this year, Satya Nadella, CEO, Microsoft, had addressed the workforce internally to clarify that the decision was not based on any failure of individuals or weak performance. He had conveyed that the company was simply repositioning itself to meet new business priorities, including stronger focus on AI integration across products and services. The intention to focus on AI had existed for sometime but the plan had gained momentum only recently.
