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

✇Latest News
By: Ashley Stewart
Microsoft sales chief Judson Althoff.
Microsoft sales chief Judson Althoff.

Microsoft

  • Microsoft's latest round of layoffs takes place as the company revises its strategy for selling AI tools.
  • The layoffs target traditional sales roles, some of which will be replaced by technical salespeople.
  • Microsoft faces competition from OpenAI and Google, prompting the sales strategy overhaul.

Microsoft's latest round of layoffs come as the company revises its strategy for selling artificial intelligence tools amid increasing competition from OpenAI and Google, according to sources familiar with the plans and internal documents.

The company's recent job cuts included thousands of salespeople, the people said, and largely targeted traditional salespeople that the company intends to replace with more technical salespeople to better sell AI tools.

Microsoft on July 2 said it plans to lay off less than 4% of its workforce, which would be around 9,000 people. The company typically makes changes to its workforce around this time of year as July 1 marks a new fiscal year, but this year's layoffs are significant as the company cuts costs to make up for massive spending on AI.

Microsoft plans to replace many traditional salespeople, often called "specialists" internally, and replace them with "solutions engineers," who can show customers actual demos earlier on in the sales process, the people said.

Microsoft confirmed the company is replacing some specialist roles with solutions engineers to increase the technical and industry understanding among its salesforce, and plans to hire more salespeople outside its headquarters to get more sellers out in the field.

The company has received feedback from customers that they had to engage with too many salespeople before getting down to the technical details and demos. "The customer wants Microsoft to bring their technical people in front of them quickly," one of the people said. "We need someone who is more technical, much earlier in the cycle."

The changes come as Microsoft faces increasing competition for enterprise customers in AI. Microsoft has an advantage in that many large companies already use its other tools, but many of those companies' employees want the more well-known ChatGPT.

The sales cuts are tied to a plan to simplify how Microsoft sells AI, detailed internally earlier this year.

In a memo to the sales organization the day before the layoffs were announced, Microsoft sales chief Judson Althoff laid out a vision to revamp the organization.

Althoff called for "continued agility" and "reinventing Microsoft and MCAPS" to become "the Frontier AI Firm," and outlined the five priorities of the sales organization, including to "establish a Copilot on every device and across every role."

Althoff also internally unveiled plans in April to slash the number of the sales team's "solutions areas" by half during the next fiscal year, which starts July 1. BI obtained copies of slides from his presentation.

Microsoft previously had six solutions areas: Modern work, Business Applications, Digital & App Innovation, Data & AI, Azure Infrastructure, and Security. Beginning July 1, these areas were set to be combined into three: AI Business Solutions, Cloud & AI Platforms, and Security, according to those slides.

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Read the original article on Business Insider

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I was skeptical about cruises for years. Then, I spent 8 days on one with 12 relatives of all ages.

✇Latest News
By: Pamela Vachon
The writer's family about to get on a cruise ship to Alaska, pictured in the background.
Before going on this cruise, my family of 13 had never been on vacation together.

Pamela Vachon

  • I'm an avid traveler, but I always used to avoid cruises — until I went on one with 12 relatives.
  • The cruise helped us travel at our own paces, spend time together, and easily eat meals as a family.
  • Even though I was a former skeptic, I'll probably book another cruise again.

When the Royal Princess pulled away from the port in Seattle with me, my husband, and my extended family on board, I wondered what the next week would hold.

My mother and sister had conspired to plan a family trip in honor of my dad's 80th birthday, deciding on an Alaskan cruise as the setting for our first-ever group vacation.

I'm an avid traveler, but I'd previously had reservations about cruises. I typically prefer to navigate a new place myself for more than just a handful of hours in port.

Not to mention my extended family of 13 hadn't spent more than a day together … well, ever. We generally get along, but eight days spent traveling together is a different story than eight hours together in someone's living room on Christmas.

This cruise from Seattle to Alaska's Inside Passage, however, turned out to be an ideal vacation for a multigenerational group of people with different abilities, travel styles, and interests.

On a cruise, we could stray apart but easily find each other again.
The writer's relative using binoculars on the cruise deck.
As soon as we got on the cruise, we started splitting up based on our varying priorities.

Pamela Vachon

It was established pretty early on that no one expected us to roll as a group of 13 at all times.

Upon boarding, we split up automatically based on our various priorities: checking out the pool, finding drinks, or securing premium dining reservations. This helped set the tone for the rest of the trip.

However, because we were all effectively in the same place and had cabins in the same corridor, we never had to worry that anyone would be lost or left behind.

We each got to choose our own adventure — literally.
The writer's family on an off-shore excursion on their cruise.
We went on off-shore excursions together, but split up based on the activities that appealed most to us.

Pamela Vachon

The variety of activities offered on off-shore excursions meant that everyone got to spend time experiencing Alaska's port towns in a way that most appealed to them.

We quickly learned how important this was on a trip with so many family members, including people of varying ages. With so many different activities, older relatives with more limited mobility were spared from having to keep pace with the younger ones.

My husband and I chose a foodie walking tour and whale-watching excursions, and we also checked out some local distilleries in each port. Meanwhile, others went kayaking, hiking, or dog-sledding.

I got to connect with different relatives over different activities.
The writer, her husband, and her nieces swimming in the morning on a cruise ship.
As the week went on, our nieces started joining me and my husband for our early morning swims.

Pamela Vachon

Even on board, we could all choose our own preferred activities, from line dancing to playing games to tasting wine.

Some of my favorite moments on the trip happened when nuclear family units got reshuffled for various activities. For example, my husband and I loved to go for an early morning swim before breakfast when the deck was empty, and various family members joined us throughout the week.

This isn't to say we didn't spend time together as a group, though.

The activities we chose to do together were appropriate for everyone's interests and abilities: a scenic train ride, for instance, or an after-dinner show on board. We also ate dinner together as a family.

Cruising made it easy to plan dinner with such a large group.
The writer's family at dinner on their cruise ship.
It's usually hard to coordinate dinner reservations for such a large group, but going on a cruise made it easy.

Pamela Vachon

Having a standing reservation at the same time and table every night meant that we never wasted time or energy trying to figure out where we could go as a large group.

I also appreciated that our cruise's menu was clearly designed to fit many diets and palates.

I'm a food writer with a fine-dining background, but my youngest relatives? Not so much. Fortunately, dining room menus on cruise ships tend to have options for everyone.

Because we'd often spent at least part of the day doing different activities, dinner was a nice opportunity to share stories and catch up. We were split between two tables next to each other, but made an effort to shuffle seating arrangements each night.

The leaders and planners in our family got to relax with the rest of us.
The writer and her husband on a cruise in Alaska.
After having such a wonderful time with our family, my husband and I might plan a cruise trip for just ourselves.

Pamela Vachon

Every family has members who tend to take charge when it comes to meals and activities. Among friends, I am typically that person; in my family, however, I am usually out-planned by other members.

I could appreciate, though, that those in my family who typically took on these responsibilities were relieved of the pressure to plan and keep everyone entertained, and could lean into the pre-organized activities that cruising offered.

Despite my prior cruise skepticism, I'd do it again. It may not be my first choice for certain destinations, but the ease of travel and variety of activities were appealing — and it turned out to be a great option for a large group trip.

Before long, I may even end up taking a cruise with just my husband.

Read the original article on Business Insider

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A family spent $69,000 turning their garage into an apartment so their son could live rent-free while launching his startup

✇Latest News
By: Samantha Grindell Pettyjohn
A photo of three people in front of a green apartment with a red door.
The Starmer family turned their garage into a small apartment.

Hurt Photography

  • Christina Starmer's son wanted to move out of the house after graduating from high school.
  • She and her husband converted their garage into a studio apartment where he could live rent-free.
  • Their son focused on his startup while he lived there, and the Starmers can now rent out the space.

Many parents go above and beyond to support their kids — but Christina and Jeff Starmer took it to another level when their son wanted to launch a startup just after graduating from high school.

They decided to turn their garage into a studio apartment, giving him a free place to live while he focused on his work.

The project was a boon to the young founder — and allowed the Starmers to stumble into a lucrative side hustle.

In the fall of 2022, the Starmer family was on the cusp of transition.
A selfie of a family of four in a parking lot.
The Starmer family.

Christina Starmer/Her Home Reno

Christina and Jeff Starmer live in Jacksonville, Florida, where they own CenterBeam Construction, a company that renovates historic homes. They have two kids, Chloe Starmer, 29, and Lyman Starmer, 21.

In the fall of 2022, Lyman was on the cusp of graduating from high school. He planned to move out of his parents' home after graduation and devote himself to launching his startup, Deli, which uses AI to help people with the house-hunting process.

But Christina, 55, was concerned her son couldn't afford to live on his own and start his company, particularly because rent was high in their area in the wake of the pandemic.

"He was having to figure out how to get programmers and stuff like that, and I was like, 'You don't have any money and any money that people do put into your company, you don't want to spend that on housing,'" she told Business Insider.

The family's garage offered the perfect solution.
A photo of a garage with a refrigerator in it.
The Starmers' garage.

Christina Starmer/Her Home Reno

The Starmers have lived in their home for 19 years. During that time, they added a separate garage to the property.

The partially finished, 378-square-foot garage mostly served as a storage space for the family, housing things like bikes, workout equipment, and a second refrigerator, though it had electric and plumbing capabilities that had yet to be hooked up.

Since they were no strangers to construction and home renovation, Christina suggested turning the space into an apartment where Lyman could live rent-free. She and Jeff could also list it on Airbnb when their son moved out, giving them another income source.

"He was working so hard," Christina said. "We started a business, and I know what it takes to start a business, so I'm like, 'I would give my kids all the opportunity in the world.'"

It was a no-brainer for the whole family.

The Starmers started working on the renovation in November 2022.
A green garage apartment in a backyard.
The exterior of the garage.

Hurt Photography

Christina told BI she initially set a budget of $48,000 for the remodel.

She and Jeff were able to serve as their own contractors for the project and do most of the labor themselves, only outsourcing work for changes to the electricity and plumbing.

Their daughter Chloe helped her parents with the design and layout of the space, visiting them on weekends to help with the renovation, and Lyman contributed to physical work like tiling and framing.

The structure originally had two garage doors, and the renovation kicked off with closing up one of them.

"The other garage door remains today," Christina said. "That way, if somebody else ever wanted to convert it back, they could have a garage that they could drive in."

The completed space functions like a cozy studio apartment.
A photo of a kitchen with gray cabinetry and an entryway with an archway leading to it.
There's a kitchen with bar seating.

Hurt Photography

When you enter the apartment, you walk right into the kitchen, which has a small island with bar seating, a refrigerator, a stove, and a dishwasher.

Maximizing space was a top priority as they renovated. For instance, the kitchen was designed with a built-in pantry.

"While we were framing, I was like, 'I know it's a 2-by-4 wall, but I think I can make a pantry out of this 2-by-4 stud here,'" Christina said. "So instead of just drywalling it up, we made a large, long box and put some doors in the front."

"I put wallpaper in the back and a couple of shelves, and now all of a sudden, you have a pantry for canned foods," she added.

Bringing light into the living area was a challenge.
A photo of a small living area with an archway leading to a bedroom.
The living area connects to the kitchen.

Hurt Photography

A small living area sits across from the kitchen, and it includes an air conditioning unit.

Christina said the biggest challenge with designing the living area was the limited natural light in the room, as the whole apartment had only one glass door and one window. The glass door was in the bedroom, which was separated from the living area by a wall, so the Starmers decided to add an internal window to the space.

"We went to one of those old salvage yards and got a glass door from like the 1900s, turned it sideways, and it became a window in between the two rooms," Christina told BI.

High ceilings make the space feel bigger than it is.
A small bedroom with a window and and a bed with a blue headboard.
The bedroom in the apartment.

Hurt Photography

"The garage was originally built with a hip roof, which makes the ceiling higher," Christina said.

The ceilings are closer to 11 feet instead of the typical 8 feet. Plus, there are some exposed beams for a touch of character.

"It feels so much bigger," she added.

The apartment even has a washer and dryer, though Christina has one regret about it.
A bedroom with an entryway leading to a bathroom with laundry stacked atop it.
The bedroom has a full-sized washer and dryer.

Hurt Photography

The apartment's bathroom is across from the bedroom, and it sits a step above the rest of the space.

"The plumbing was already stubbed out there, so we didn't want to have to jack up concrete and stuff," Christina said of why there was a step.

Instead, they just raised the whole bathroom by about 7 inches, which saved the Starmers money and allowed them to create separation between the bathroom and bedroom.

They also put a full-size washer and dryer in the mini hallway between the bedroom and bathroom, stacking them atop each other just across from a closet.

Christina put a drawer beneath the machines for storing detergent and other laundry supplies, which she said still "bugs" her to this day because it made the dryer a little too high to reach easily. A step ladder easily solves the problem, though.

Designing the small space wasn't an easy task.
A photo of a detached garage painted green.
The garage is in the backyard.

Hurt Photography

Christina said designing the layout for the apartment was the biggest hurdle of the project, as she wanted it to feel like a true studio despite the limited square footage.

"We wanted a really good flow in a super tiny space and for someone to not feel boxed in," she said.

She tried to avoid some of the pitfalls of mini spaces, like creating a bunk bed that was too small to stand up in or ultra-slim stairs.

Instead, she focused on creating a one-story space that felt spacious and inviting.

The renovation ended up costing about $69,000 and took about four months.
Three people gathered at a countertop in a kitchen.
Christina Starmer, Jeff Starmer, and Chloe Starmer.

Hurt Photography

Christina and Jeff wrapped the project in March 2023, creating a space that worked for their son while he finished high school and launched his career.

It will also be easy to rent out eventually. "We haven't put it on Airbnb yet, but that's coming," Christina said.

Although the project was over budget, the Starmers still saved tens of thousands of dollars by working as their own contractors.

"If you do hire a contractor and you are paying all of that labor, which comes with trim out, framing, installing cabinetry, and all that stuff that we did ourselves, you will definitely be in that $120,000-ish range of today's market," Christina told BI.

Lyman moved into the apartment when it was finished and lived there until he relocated to New York City in 2025.
A photo of a man with brown hair.
Lyman Starmer.

Christina Starmer/Her Home Reno

"My parents turning their garage into a studio apartment gave me the one thing first-time founders never have enough of — runway," Lyman told BI. "Skipping roughly $1,500 in monthly rent for almost two years meant I could funnel every spare dollar into Deli, the AI home-search platform I was building — hiring contract devs, covering cloud bills, and stretching our early runway instead of a landlord's pocket."

"I had a door I could close for all-night coding marathons and investor Zooms, yet I was still close enough to step inside for dinner or a quick pep talk," he added. "That mix of independence and family support turned a simple remodel into the launchpad for my startup."

Christina said the transition to her son living in the apartment went smoothly, and she was grateful she could make things a bit easier for him.

"When he started living outside, in the mornings, he would come in and have coffee before he went to school, even though he had a coffee pot out there," she said. "Then in the evenings, by the time he got home and showered and worked a little bit, he would be back in and we would all eat dinner together."

"I thought it was lovely," she added.

Now, the rest of the Starmer family is helping others transform their garages.
A photo of three people in front of a green apartment with a red door.
The Starmers turned their garage experience into a side hustle.

Tommy Hurt Photography

The Starmers shared videos about the apartment project on their social media platforms, and the videos went viral, amassing millions of views on TikTok.

Because of the interest in their videos, Christina, Jeff, and Chloe decided to share what they learned about renovating small spaces online. They sell plans for garage conversions on their website, Her Home Reno. In June, they also launched an online course to teach novices how to take on a project like theirs.

Christina said they have sold hundreds of plans so far, and she hopes their knowledge can help others make the most of their spaces.

Read the original article on Business Insider

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Tesla said it would start making its cheaper EV by June. It's keeping quiet about the mysterious project — here's what we know.

✇Latest News
By: Tom Carter
Elon Musk in the Oval Office at the White House.
Elon Musk first announced Tesla's intention to develop a $25,000 car in 2020.

Tom Brenner/The Washington Post/Getty Images

  • Tesla reported its second quarter of underwhelming sales in a row on Wednesday.
  • Elon Musk's automaker could really use its long-promised affordable EV right now.
  • Tesla said it would start making cheaper models in the first half of 2025, but there's still no sign of them.

Tesla could really use the affordable EV it's been promising, but the timeline keeps slipping.

As recently as April, Tesla said it would begin production of its mysterious new "affordable" EVs in the first half of 2025. But the deadline came and went on Tuesday with no word, and Wednesday saw the automaker report its second consecutive year-over-year decline in deliveries.

When Tesla announced similarly bad delivery numbers in April, an analyst told Business Insider it made making an affordable EV even more crucial.

In addition to brand damage from CEO Elon Musk's political interventions, Tesla faces pressure from cheaper rivals in China like BYD, and rising competition from Western manufacturers expanding their EV lineups, like Cadillac.

A more affordably priced model is all the more compelling as the automaker simultaneously grapples with an overall slowdown in EV adoption.

Musk first mentioned launching a cheap EV in 2020, but since then, concrete details on what the car might actually look like, and when it might be coming, have been scant. Here's what's been said about the long-awaited model:

September 2020

"We're confident that long term, we can design and manufacture a compelling $25,000 electric vehicle" — Elon Musk

At Tesla's "Battery Day" presentation, Musk said he was confident the company would be able to ship a "fully autonomous" $25,000 electric car "about three years from now," adding that such a vehicle had "always been our dream."

January 2022

"We're not currently working on the $25,000 car. At some point we will, but we have enough on our plate right now, too much on our plate frankly," — Elon Musk

Asked about the status of the $25,000 EV in an investor call in 2022, Musk said Tesla's affordable electric car had taken a back seat to other projects.

January 2024

"They should be taken with a grain of salt, since I'm often optimistic," — Elon Musk

In a January 2024 earnings call, Musk said Tesla would start production of a next-generation mass-market EV near the end of 2025, but admitted that he was "often optimistic" regarding timelines.

A Tesla Model Y under construction stands in a production hall of the Tesla Gigafactory during the open day in Grünheide, east of Berlin.
Reports have said that Tesla's affordable EV will be a stripped back version of its best-selling Model Y.

Picture Alliance, Getty Images

April 2024

"Tesla has canceled the long-promised inexpensive car that investors have been counting on to drive its growth into a mass-market automaker," — Reuters

A Reuters report, citing anonymous sources, said it had seen internal messages and notes from meetings about the project being scrapped. Musk quickly fired back, denying the report in a post on his X.

"Reuters is lying (again)," — Elon Musk

Reuters said at the time that Tesla had not responded to a request for comment, and noted Musk had not shared any specific inaccuracies about the story.

"If you have a great product at a great price, the sales will be excellent," — Elon Musk

After Tesla's stock price dropped following the Reuters report, the company said in an investor call later in April that it would accelerate plans for more affordable models. Musk said they could go into production in late 2024 or early 2025.

October 2024

"I think having a regular $25,000 model is pointless. It would be silly. It would be completely at odds with what we believe," — Elon Musk.

Asked about when Tesla investors could expect a "$25,000 non-robotaxi regular car model" in an earnings call, Musk made it clear that Tesla was going all in on robotaxis and autonomous vehicles.

Tesla robotaxis launch in Austin, Texas
Tesla launched a small number of its robotaxis in Austin in June.

Joel Angel Juarez/REUTERS

January 2025

"Plans for new vehicles, including more affordable models, remain on track for start of production in the first half of 2025," — Tesla.

After a glitzy robotaxi launch in October fell flat with shareholders, Tesla stuck to Musk's timeline but provided no further details about the automaker's affordable models in its January 2025 earnings report.

April 2025

"Global production of the lower-cost Model Y, internally codenamed E41, is expected to begin in the United States," — Reuters.

Reuters reported that the planned affordable model would be a stripped-down version of Tesla's best-selling Model Y, and that production had been delayed by several months. It cited three sources "with knowledge of the matter."

The company did not respond to a request for comment on the reported delay.

"As with all launches, we're working through the last-minute issues that pop up," — Lars Moravy.

During its Q1 earnings call, Tesla reiterated that production of the affordable models would start in the first half of the year and said it had retooled its factories to prepare to launch the new models.

Tesla's vehicle engineering VP, Lars Moravy, said the production ramp might be "a little slower" than the company had previously hoped, but added Tesla still expected to meet the deadline.

July 2025

Tesla did not respond to a request for comment on the status of the company's affordable models.

Read the original article on Business Insider

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Big, beautiful bill gives some seniors a break but excludes poorest

✇Axios News
By: Emily Peck

The "big, beautiful bill" features a new tax break for older Americans who pay taxes on Social Security income. But there's a significant catch.

Why it matters: The break leaves out the poorest seniors, and the very rich ones, too.

How it works: Both the House and Senate bills include an increased tax deduction for tax filers age 64 and older. In the Senate version, the new deduction is $6,000 for individuals and $12,000 for couples.

  • The deduction starts phasing out for those who earn over $75,000 ($150,000 for couples), and phases out completely at $175,000 for individuals and $250,000 for couples, in the Senate version.
  • The break expires in 2028 when President Trump leaves office, as do a few other White House priorities in the bills, including no tax on tips, no tax on overtime, and no tax on auto loan interest.

What they're saying: "This amounts to the largest tax break in American history for our nation's seniors," per a report out earlier this week from the White House Council of Economic Advisers.

Yes, but: Most seniors — 64% of them — don't pay taxes on Social Security, according to the White House's own analysis.

  • Those who can't afford the taxes already don't pay. This break targets most, but not all, of the rest.

Between the lines: Trump promised to eliminate taxes on Social Security income. Lawmakers couldn't pull that off entirely, given the constraints of passing a reconciliation bill and changing Social Security law.

  • This break comes close. After adding the recipients of the new tax break, 88% of seniors wouldn't pay Social Security tax, per the White House.
  • "The One Big Beautiful Bill delivers on President Trump's promise of no tax on Social Security," White House spokeswoman Abigail Jackson says in a statement, noting the analysis by the Council of Economic Advisers.

Zoom out: For those upper-middle class folks who pay taxes on retirement benefits, this is a "substantial tax break," says Marc Goldwein, senior policy director for the Committee for a Responsible Federal Budget, a nonpartisan group that advocates for fiscal responsibility.

  • For the several million senior citizens who live in poverty, and already don't pay taxes on Social Security, this doesn't help.
  • The bill would also accelerate Social Security and Medicare insolvency by a year, to 2032, per an analysis from the group.

The bottom line: Seniors in the U.S. overall are doing great financially right now, sitting on assets that have soared in value in recent years.

  • "As a whole seniors in this country are the wealthiest cohort in the history of the known universe," Goldwein says.
  • If this bill passes, they'll get to keep a little bit more.

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