Microsoft is reportedly preparing to announce another round of job cuts as the company continues efforts to reduce costs.
According to Business Insider, the planned layoffs could affect thousands of employees across several major divisions.
Microsoft Layoffs Could Affect Thousands of Roles
The reported job cuts are expected to include positions in Microsoft’s sales and consulting operations.
Employees within the company’s Xbox gaming division may also be affected.
Microsoft is expected to announce the layoffs next week, although the company has not yet publicly confirmed the plans.
Cuts Expected to Be Smaller Than Last Year
The latest workforce reduction is expected to be smaller than similar layoffs announced by Microsoft last year.
The cuts will reportedly affect less than 2.5% of the company’s global workforce.
Microsoft currently employs around 220,000 people, meaning the reductions could still involve several thousand positions.
Microsoft Continues Cost-Cutting Strategy
The technology company has reduced staffing levels several times over the past three years.
These measures form part of Microsoft’s wider strategy to control operating expenses and improve efficiency.
The company has been redirecting a growing share of its investment toward artificial intelligence infrastructure, products, and cloud computing services.
AI Spending Reshapes Microsoft’s Workforce
Microsoft has committed billions of dollars to artificial intelligence development as demand for AI tools and computing capacity continues to grow.
The company’s increased focus on AI appears to be influencing how it allocates money and employees across its business divisions.
The reported layoffs suggest Microsoft is continuing to reduce spending in some areas while prioritizing investment in artificial intelligence.
