Hundreds of thousands of workers face job losses as tech companies plan mass layoffs starting next month, driven by increased investments in Artificial Intelligence AI.

Bloomberg reported on Wednesday that Microsoft is among the companies planning to cut jobs as part of a broader effort to streamline its workforce.

Over 62,832 employees have been fired so far in 2025 alone in tech companies globally, ranging from Google to Amazon.

The layoffs are expected to be announced early next month, following the end of the tech giant’s fiscal year, the report said.

Sales teams will not be exclusively affected by the reductions, and the timing could still change, the people told the outlet.

The terminations follow a previous round of Microsoft in May that hit more than 6,000 people, mostly in product and engineering positions. 

In April, the largest tech company in the world said it planned to use third-party firms to handle more sales of software to small and mid-size customers.

The company had a global headcount of 228,000 at the end of June 2024. 

Microsoft that has market capitalization of over $3 trillion USD that is equivalent to KSh 390 trillion, is looking to rein in costs as it channels billions into artificial intelligence.

However Microsoft has not commented to Bloomberg about the potential job cuts.  

The news comes a day after Amazon’s CEO mass job cut as the company also increases its use of AI.

Amazon boss Andy Jassy said he plans to reduce the company’s corporate workforce over the next few years as the tech will make certain roles redundant.  

It is not yet clear how many workers will lose their jobs and when the cuts will come. 

‘It’s hard to know exactly where this nets out over time, but in the next few years, we expect that this will reduce our total corporate workforce,’ Jassy explained. 

The company has already slowed hiring, suggesting AI is already influencing the company’s staffing needs.

It comes as the world grows increasingly concerned about the impact of AI on the job market.

AI is shaking up the job market, with entry-level white-collar jobs disappearing the fastest and layoffs rising in tech, finance, and consulting.

Earlier this month Procter & Gamble, which makes diapers, laundry detergent, and other household items, announced it could cut 7, 000 jobs; about 15 percent of non-manufacturing roles. 

Early this year, Microsoft founder, Bill Gates said with the advent of AI humans will no longer be needed for most things in the world.

Gates warned that AI will render many jobs obsolete in the coming years, automating roles across multiple industries.

The billionaire named only three careers that will not be replaced by AI; which are  in the fields of biology, energy experts, and programmers.

Some of the jobs that are already feeling the AI heat are; customer service, data entry, translations, manufacturing among others.