Bad news for employees of this company as it plans to sack thousands in sales; not Narayana Murthy’s Infosys, L&T, Ratan Tata’s TCS, name is…

As part of a wider initiative to streamline its operations after plowing billions into artificial intelligence, Microsoft is reportedly planning to reduce its workforce by thousands, with many of the cuts believed to hit its sales division. According to the Bloomberg report, people with knowledge of the situation stated the job layoffs will likely be announced in early June, following the end of Microsoft’s fiscal year.

Bad news for employees of this company as it plans to sack thousands in sales

The sales organizations will be significantly impacted by the job downsizing, but the layoffs will not be limited to sales organizations. The announcement timing may change, the individuals said, as they spoke on the condition of anonymity because of the sensitivity of the situation, reported Bloomberg.

Microsoft plans to sack thousands in sales next month

These upcoming layoffs would follow a prior round of layoffs in May that affected approximately 6,000 employees, mostly product and engineering roles, although frontline departments like sales and marketing were spared. Microsoft had also informed its employees in early April that it intended to shift more of its software sales for small and mid-sized businesses to third parties.

Microsoft said it consistently assesses its organizational structure to make sure it aligns with its priorities for growth. As the company invests tens of billions of dollars in servers and data centers, executives have publicly assured Wall Street—and privately warned employees—that it will be very strict in controlling spending elsewhere.

At the end of June 2024, Microsoft employed roughly 228,000 employees, of which perhaps 45,000 in sales and marketing. Microsoft frequently reorganizes teams and makes other organizational changes at this time of year, generally at the end of its fiscal year in June.

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