Microsoft Layoffs July 2025: After 6,000 Job Cuts in May, Tech Giant to Trim Thousands More Roles Next Month?

Microsoft Corporation, one of the world's leading technology companies, is preparing for another round of job cuts in early July 2025. The upcoming layoffs will primarily affect the company's global sales and marketing divisions. This move aligns with the company's growing focus on artificial intelligence (AI). The layoffs follow earlier cuts that affected engineering and product teams.

Microsoft Layoffs July 2025

After slashing 6,000 jobs in May, tech giant Microsoft Corporation is now reportedly preparing to lay off thousands more employees in July, with a significant impact expected in its global sales division, according to a June 19 report by Bloomberg. The planned layoffs are part of Microsoft's broader effort to "trim its workforce", with the company preparing to cut thousands more jobs to redirect resources towards ramped-up investments in artificial intelligence (AI).

Microsoft employees affected by the planned job cuts are expected to be informed in July, although the exact timing and total number of roles have not been confirmed. While the sales teams are expected to be most impacted, other departments may also face reductions as part of a wider company reorganisation. Microsoft has not made an official statement, but internal communication is likely taking place to explain the reasons behind the changes and to support employees through the transition as per the report.

Tech Layoffs in 2025 As of Now

Microsoft's restructuring follows a similar pattern across the industry, with tech giants like Amazon also downsizing to realign resources toward automation and AI development. This trend highlights a broader transformation in how technology companies organise and invest. With approximately 228,000 employees worldwide, including around 45,000 in sales and marketing, Microsoft's upcoming workforce cuts aim to reshape its talent base for an AI-first future.

Microsoft's $80 Billion Capital Expenditures Budget

Microsoft's strategy includes a record $80 billion capital expenditures budget for the fiscal year, with a major portion allocated to expanding its cloud data centres and bolstering AI capabilities. By reducing headcount in sales and other non-core units, Microsoft seeks to channel resources into boosting its AI infrastructure-backing advances in large language models, analytics and computing capacity necessary for AI workloads.

A month back, in May 2025, the tech giant carried out a significant round of job cuts, affecting 6,000 positions, around 3% of its global workforce. The layoffs mainly targeted product and engineering teams, while customer-facing roles like sales and marketing were largely unaffected.