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- Microsoft to lay off thousands of salespeople after cutting 6,000 jobs in May
Microsoft to lay off thousands of salespeople after cutting 6,000 jobs in May
Microsoft has not directly connected the recent layoffs to its increased investment in AI. However, many observers suggest that the ongoing shift towards AI-driven automation may be impacting Microsoft's vision for its workforce.
Microsoft is gearing up to lay off thousands of employees, mainly in its sales division, as the tech giant streamlines its workforce amid a surge in investments in artificial intelligence, according to reports. These upcoming job cuts follow a previous round of layoffs in May that impacted around 6,000 workers. At that time, Microsoft CEO Satya Nadella made it clear that the layoffs affecting about 3 per cent of the workforce were part of restructuring efforts rather than a reflection of employee performance. Although the company has yet to make an official announcement regarding the new layoffs, they are anticipated to be revealed early next month, coinciding with the conclusion of Microsoft's fiscal year on June 30.
It's important to note that these job cuts will not be limited to sales teams, and the timing could still shift. As of June last year, Microsoft employed approximately 228,000 people.
AI led job loss
While the company hasn’t directly linked the recent layoffs to its ramped-up investment in AI, many observers believe that the ongoing transition towards AI-driven automation is influencing how Microsoft envisions its workforce. This fiscal year, Microsoft has earmarked a substantial $80 billion for capital expenditures, primarily aimed at expanding data centers to alleviate capacity constraints for its AI services.
Amazon to reduce workforce
Meanwhile, Amazon's CEO, Andy Jassy, has shared his insights on the anticipated impact of generative artificial intelligence on the company's workforce in the years ahead. He noted that as Amazon expands its use of this technology, certain job roles may decline while new types of positions will emerge.
Jassy acknowledged the difficulty in predicting the precise outcomes over time but expressed his belief that adopting AI would likely lead to a reduction in the overall workforce due to increased efficiency.
In his message, he highlighted that Amazon currently has over 1,000 generative AI services and applications either in development or already completed, although this number represents just a small portion of the company's broader ambitions.
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