Microsoft new layoffs in July 2025: 1,000+ jobs at risk - This department could be targeted

Microsoft layoffs: Microsoft is gearing up for a significant workforce reduction early next month, reportedly targeting roles across its global sales divisions as the tech giant dives deeper into its AI ambitions. This move marks the next wave of layoffs following earlier cuts that affected thousands in engineering and product teams.

While the decision may come as a surprise to some, Microsoft¡¯s leadership views it as a strategic effort to streamline operations and reallocate resources toward its expanding AI and data-centre investments. For employees, shareholders, and the broader tech industry, the coming weeks will be revealing as Microsoft positions itself for long-term agility and innovation.

Following the May layoffs

This upcoming round follows a May reduction of around 6,000 employees, impacting various engineering and product development divisions. Together, these actions represent Microsoft¡¯s most significant workforce reorganization since its large-scale cuts in early 2023.

Strategic shift towards AI

Microsoft is planning to cut thousands of jobs | Credit: Microsoft

Microsoft has earmarked a massive $80 billion for capital expenditures in its current fiscal year, with a significant focus on data centre expansion to handle AI workloads. By trimming roles in sales and other areas, the company aims to reallocate resources to bolster its AI infrastructure.

Broad market impact

This wave of layoffs reflects broader industry trends, with tech giants like Amazon and more are also downsizing roles due to AI-driven automation and shifting business needs. Microsoft currently employs about 228,000 workers globally, including approximately 45,000 in sales and marketing.

What comes next?

Affected employees can expect notifications in July, although the exact timing and numbers may be subject to change. Company insiders note that while sales divisions are the primary focus, other departments may also be affected as part of the rebalancing effort. Microsoft has not issued official comments.

Long-term outlook

Microsoft appears determined to streamline costs and sharpen its focus on high-growth areas, such as artificial intelligence (AI). While job reductions will impact thousands, the move reflects the company¡¯s intent to maintain competitiveness and operational agility amid changing demands in the tech landscape.

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