Microsoft confirms layoffs, report says 3000 losing jobs

Alicia Guzman
July 7, 2017

Amid a broader reorganization of its sales structure, Microsoft on Thursday confirmed plans to cut thousands of jobs around the world. "This can result in increased investment in some places and, from time-to-time, re-deployment in others".

Reuters reported on Monday that Microsoft would undergo a reorganisation that would impact its sales and marketing teams as the company doubles down on its fast-growing cloud business. Cloud sales, by comparison, have almost doubled. It will lay off 3,000 workers, around 75 percent of which will be from sales positions outside the U.S.

"Microsoft is implementing changes to better serve our customers and partners", a spokesperson told The Register. Most of the changes would reportedly affect employees outside of the United States.

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The layoffs are part of a larger reorganization that will put a major focus on cloud computing, according to GeekWire. Intel began a similar transition previous year, eliminating 15,000 jobs to reduce the company's dependency on the fading PC market.

Under Mr. Nadella, Microsoft has made that transition to cloud software delivery, and its personal computer software business is no longer considered an engine of growth. And businesses require specialized cloud software, tailored for their industry. Microsoft has been axing employees at a rather rapid pace.

Chief executive Satya Nadella has been focusing on the firm's cloud unit, which has been a source of strength for the Microsoft. However, there has been no number attached to how many could be released during this shift, and today's chatter on Blind has yet to crystallize the potential.

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The move also reflects the declining enterprise interest in desktops and the rise of cloud services offered out of Microsoft data centers globally.

Microsoft completed its $26 billion acquisition of the professional social network LinkedIn late a year ago as part of its new strategy.

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Other reports by Info About Network

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