Microsoft is currently in the midst of a substantial strategic reorganization, having laid off more than 15,000 employees since May 2025. The job cuts have predominantly impacted key departments including Azure Cloud, Global Sales, and Engineering. The bulk of the layoffs took place in May and July, with additional measures implemented in June, August, and September. A Microsoft spokesperson commented that organizational and workforce adjustments are standard practices in business management, and that the company will give precedence to investments in areas of strategic growth for the future. The fiscal fourth-quarter earnings report for fiscal year 2025, published in July, revealed year-on-year increases in both revenue and net profit. Media analysts propose that Microsoft's extensive layoffs are geared towards a complete pivot to the artificial intelligence sector, involving a reallocation of resources and manpower, with intentions to invest around $80 million in AI initiatives. The objective is to overhaul the workforce composition, guarantee investment in state-of-the-art technologies like AI, and gain a competitive advantage in the market.