Microsoft planning cloud-focused sales force reorganisation, layoffs likely

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The exact number of layoffs is unclear, though the cuts will hit staff in offices around the world, this person said. In 2016, the Seattle Times reported that Microsoft cut 2,850 jobs. Bloomberg, meanwhile, says the job cuts will affect the Worldwide Commercial Business led by Judson Althoff and Jean-Philippe Courtois, who took over Microsoft's sales and marketing group after veteran COO Kevin Turner left a year ago. The restructuring will also include an organizational merger of its enterprise customer unit with its one or more SME-focused divisions.

Microsoft is to shed light on its workforce trimming and sales restructuring in the coming week, but has thus far yet to release any official statements or comments. This is likely as part of an effort to slowly move away from its software sales businesses and provide a boost to its burgeoning enterprise cloud services. "Now it's more important to convince customers to sign up for cloud services hosted in Microsoft's datacenters", according to Bloomberg.

The reports of layoffs also fall in line with the previous trend of Microsoft announcing headcount reductions at the end of its fiscal year that typically falls in July.

Microsoft is reorganizing its entire sales organization to better focus on its fast-growing cloud-computing business, according to an internal memo sent to employees on Monday morning. A recent study found Microsoft to be ahead of the game already, in this regard. Microsoft announced a previous round of almost 3,000 job cuts last July to reflect its changing business focus. Inside sources said "smaller personnel changes" may impact other sections of the company.

Microsoft CEO Satya Nadella carved up Turner's responsibilities after his departure.

And if judging by Microsoft's stock price over the past five years (up 125.34%), during which the shares have risen by an average of 25%, Nadella's goal of injecting fresh blood into key divisions have paid off handsomely.

For a long time, Microsoft has trained its sales force to convince customers to buy software for their desktops and servers.

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