Microsoft is set to lay off several thousand employees, primarily in its sales department, as part of a restructuring aimed at optimizing its workforce while advancing its costly artificial intelligence initiatives. This move follows a previous reduction of 10,000 jobs in January 2023 and comes just before the start of the company's new fiscal year in July.

Microsoft is set to lay off approximately 9,000 workers, following the elimination of around 6,000 roles in May. This latest round of job cuts affects less than 4% of the company's global workforce and spans various levels and teams, with notable reductions in the gaming segment.

Microsoft is laying off 3% of its workforce, approximately 6,000 employees, as part of organizational changes to adapt to a dynamic market. The layoffs, which include a significant reduction at the Redmond headquarters, are not performance-related and come despite the company reporting strong quarterly earnings. CEO Satya Nadella emphasized the need to adjust sales execution and management structures in response to shifting market demands.

Microsoft is reportedly planning layoffs within its Xbox division, with rumors suggesting significant job cuts are imminent. The company has not confirmed the details yet, but the news raises concerns about the future direction of its gaming business.