Microsoft's Strategic Shift: AI Investment and Workforce Reductions
Microsoft is cutting thousands of jobs, notably in sales, to prioritize AI investments. This follows a previous layoff of 6,000 employees. As AI integration increases across sectors, Microsoft's $80 billion capital expenditure aims to expand AI data capacities. Layoffs may be announced next month.
In a strategic realignment, Microsoft plans significant job cuts, focusing particularly on sales roles, as it intensifies efforts in artificial intelligence investment, according to Bloomberg News insights from informed sources.
This wave of layoffs occurs after Microsoft reduced its workforce by around 6,000 employees in May. Aiming to strengthen its position in the burgeoning AI sector, the company is redirecting resources to enhance data capacity, crucial for AI service expansion.
Amid industry-wide AI adoption, Microsoft is poised to announce layoffs next month, post fiscal year-end, while allocating $80 billion for data center growth. The decision aligns with industry trends towards AI, similar to Amazon's workforce shift under CEO Andy Jassy.
(With inputs from agencies.)
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