Microsoft Announces New Round of Layoffs Targeting Sales Teams Amid Cloud Shift

Microsoft Corp. is restructuring its sales organization as part of its strategic pivot toward cloud computing, with nearly 1,000 employees expected to be cut. The tech giant's latest workforce reduction follows 6,000 layoffs in May and signals continued operational streamlining despite heavy investments in AI infrastructure.

Sales divisions will bear the brunt of the cuts, though other departments may also be affected. The MOVE coincides with Microsoft's April announcement to increasingly rely on third-party vendors for SMB software sales—a strategy shift reflecting broader industry trends toward partner ecosystems.

While exact figures remain unconfirmed, sources indicate thousands could ultimately lose jobs when formal announcements are made in early July. The timing aligns with Microsoft's fiscal year-end, suggesting financial recalibration as the company balances AI expenditure with cost discipline.