Microsoft is strategically shifting its workforce by replacing thousands of traditional salespeople with technical experts, following recent layoffs affecting approximately 9,000 employees. This move addresses intensifying competition in the AI market from OpenAI and Google.

Microsoft has confirmed that it will lay-off as many as 9,000 workers, in the tech giant's latest wave of job cuts this year. The company said several divisions would be affected without specifying which ones but reports suggest that its Xbox video gaming unit will be hit.

Microsoft will lay off nearly 4% of its workforce, the company said on Wednesday, in the latest job cuts as the tech giant looks to rein in costs amid hefty investments in artificial intelligence infrastructure.