Microsoft(US:MSFT) Haitong Securities International·2025-07-09 13:31Investment Rating - The report does not explicitly provide an investment rating for the industry or specific companies. Core Insights - Microsoft is undergoing significant organizational restructuring, including a layoff of approximately 9,000 employees, which represents about 4% of its total workforce. This move is aimed at reallocating resources to better support its long-term AI strategy and enhance operational efficiency [1][4]. - The integration of generative AI capabilities into core products like Office, Windows, and Azure is reshaping job roles within Microsoft, leading to a reduced demand for traditional sales and management positions [2][3]. - The layoffs reflect a proactive adjustment to the talent structure, prioritizing roles that can leverage AI tools and create composite value, such as AI solution architects and data center schedulers [3][5]. Summary by Sections Organizational Changes - Microsoft is focusing on enhancing its AI capabilities by reallocating resources from traditional roles to positions that support AI and cloud services, particularly in Azure, which is expected to grow at a rate of 34% in FY2025 [7]. - The restructuring involves cutting positions in non-core areas like Xbox while increasing hiring for technical roles that align with AI product development [5][7]. AI Integration - The report highlights that approximately 20-30% of code is now generated by AI, indicating a significant shift in how work is performed within the company [2]. - The demand for sales roles is evolving, requiring a shift towards more technically skilled personnel who can engage in solution-oriented sales rather than traditional relationship-driven sales [7]. Long-term Strategy - The layoffs are not merely cost-cutting measures but are part of a broader strategy to support the growth of AI and cloud services, indicating a clear prioritization of AI talent and resources over traditional business functions [5][6].