Microsoft recently laid off 9,000 employees, approximately 4% of its workforce, as part of a restructuring strategy aimed at enhancing its AI tool sales. This move affected various divisions, including Xbox and Azure, with a significant number of impacted roles being sales positions. The company plans to replace these roles with more technically proficient salespeople, referred to internally as “solution engineers,” to improve customer engagement and streamline the sales process. Reports indicate that customers seek quicker technical demonstrations, prompting Microsoft to adjust its sales approach. Furthermore, Microsoft is committed to embedding AI tools, like GitHub Copilot, across its operations, making AI proficiency a key performance metric for all employees. Despite facing challenges in AI product sales and a hiring freeze earlier this year, CEO Satya Nadella is firmly investing in AI and data centers to meet cloud demand, ensuring Microsoft’s competitive edge against rivals like Google and OpenAI.
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