Microsoft is reportedly planning to cut thousands of jobs, primarily targeting its sales workforce, according to Bloomberg.

The layoffs are part of an effort to streamline operations amid significant investments in AI infrastructure.

The company is spending heavily on servers and data centres to support AI development.

The job cuts are expected to be announced in early July 2025, following the close of Microsoft’s fiscal year.

Sources familiar with the matter told Bloomberg that the reductions will mainly affect sales teams but may extend to other areas.

The timing could still shift, and the company has not provided official comments, the report said.

In April, Microsoft informed employees it would rely more on third-party firms to manage software sales to small and mid-size customers.

This follows a previous round of layoffs in May 2025, which eliminated 6,000 positions, mostly in product and engineering roles, while largely preserving customer-facing teams such as sales and marketing.

Earlier in June 2025, reports emerged that Microsoft is planning to reduce more than 300 jobs as part of its cost management strategy.

In May 2025, Microsoft reduced its global workforce by about 3%, affecting around 6,000 employees across various levels and regions.

The AI boom has significantly affected the tech labour market, with companies prioritising AI-focused roles and leveraging AI technology to enhance efficiency and reduce costs.

As of June 2024, Microsoft employed approximately 228,000 full-time employees, with 55% based in the US. The company continues to implement organisational changes to position itself for success in a rapidly evolving market.

Recently, reports of Microsoft Rus, the company’s subsidiary in Russia, filing for bankruptcy also surfaced. This followed Russian President Vladimir Putin’s statements against foreign service providers acting against Russian interests.