The tech giant is planning to cut jobs in the coming month, mainly from its sales and marketing teams. This comes just a month after Microsoft laid off about 6,000 jobs. Details about the news are scanty, but Bloomberg said that it will be announced in the next month.
So, what’s going on? As of June 2024, Microsoft had 228,000 employees, 45,000 of them were in sales. According to Bloomberg, the previous layoff largely left the sales and marketing team untouched. Microsoft is moving in the AI race, as it’s planning to spend over $80 billion to support AI development in data centers. In April, Microsoft had already started informing employees that it plans to work with third-party firms for the marketing of to small and mid-sized customers.
This strategy will help Microsoft reduce operational costs by relying on gig workers for short-term campaigns instead of relying on full-time staff. On the flip side, Microsoft declined to comment on the report. It’s not only about Microsoft, other major firms like Amazon and Intel are also planning for layoffs. Companies are changing their tactics with Artificial intelligence.
AI is advancing faster than people can adapt, this much we know. While companies must evolve to stay competitive, what happens to the workers who helped build Microsoft’s success over the years? Tech leaders promise that new positions and roles will emerge, but what about employees who lack the time or resources to reskill? The tech industry focuses on future opportunities, yet the present reality for displaced workers remains unaddressed.
Microsoft has a chance here to set an example by prioritising humans over AI. Laying off may be a business decision, but supporting their employees is the right thing to do.
