Microsoft plans to replace many of the salespeople it laid off with more technical roles to compete with OpenAI, Google

Core Insights - Microsoft is undergoing significant layoffs, targeting traditional sales roles to pivot towards a more technical sales approach for its AI tools amid rising competition from OpenAI and Google [1][2][4] - The company plans to lay off approximately 9,000 employees, which is less than 4% of its workforce, as part of a cost-cutting strategy to offset substantial investments in AI [2] - Microsoft aims to replace traditional salespeople with "solutions engineers" who can provide technical demonstrations earlier in the sales process, enhancing customer engagement [3][4] Workforce Changes - The layoffs primarily affect traditional sales roles, referred to as "specialists," which will be replaced by more technically skilled "solutions engineers" [3] - The company is also looking to hire more sales personnel outside its headquarters to increase field presence [3] Customer Feedback and Market Position - Customers have expressed a desire for quicker access to technical expertise during the sales process, indicating a need for a more streamlined engagement with Microsoft's technical staff [4] - Microsoft holds a competitive advantage as many large enterprises already utilize its other tools, although there is a demand for more recognized AI solutions like ChatGPT [4] Strategic Reorganization - Microsoft sales chief Judson Althoff outlined a vision for revamping the sales organization, emphasizing agility and the goal of becoming "the Frontier AI Firm" [9] - The company plans to reduce the number of its sales team's "solutions areas" from six to three, consolidating them into AI Business Solutions, Cloud & AI Platforms, and Security [10]