The wave of job cuts at Microsoft shows no signs of stopping. According to reports, the tech giant is preparing for another round of layoffs, set to begin in July, which could impact thousands of roles.

The upcoming cuts are expected to primarily affect teams in sales and other corporate departments, according to sources familiar with the matter. While the exact number is yet to be confirmed, the layoffs are likely to coincide with the start of Microsoft’s new fiscal year in July.

This move follows last month’s announcement where Microsoft let go of around 6,000 employees. The company, which had a workforce of about 228,000 as of June 2024, previously slashed 10,000 jobs in January 2023, including roles in its HoloLens and hardware divisions.

Microsoft’s ongoing restructuring aligns with broader trends across the tech industry. Major players like Amazon, Meta, and Google have all implemented significant workforce reductions since 2023—largely driven by pandemic-era over-hiring, shifts in consumer behavior, and the transition toward emerging technologies like artificial intelligence and cloud services.

Despite the job cuts, Microsoft continues to double down on its strategic investments in generative AI and cloud computing. With deep ties to OpenAI and AI integration across platforms such as Microsoft 365 and Azure, the company is positioning itself for long-term growth in these high-priority areas, even as it scales back in others.