Microsoft To Cut Up To 3000 Jobs, Mostly Outside US, Says Report

Microsoft Is Planning Sales Reorganization Focused on Cloud

The company today acknowledged the move, reported last week by the Puget Sound Business Journal and confirmed today by CNBC.

A report of Business Today dispensed a statement of the company's spokesperson in an email that read that the company is doing so to serve its customers and partners in a better way.

Microsoft said it had notified some employees that their positions will be "eliminated". "This can result in increased investment in some places and, from time-to-time, re-deployment in others", he added. Reports have suggested that the layoffs will hit around 3,000 employees in the marketing and sales department, and focus mostly on sales staff who sold boxed software licenses.

In 2016, the company laid off almost 3,000 people with 900 of them in sales.

The technology giant wants to strengthen its cloud computing division but is facing intense competition from rivals such as Amazon and Google.

A Microsoft spokesperson would not respond to queries on how many jobs would be affected here.

Having failed in phones, leading to losses of billions of dollars and thousands of staff, the company seeks to refocus its efforts on cloud growth - specifically boosting its Azure offering. Microsoft didn't mention anything about the layoffs; instead, the memo describes how the customer model in its commercial and consumer businesses will be broken into two segments: enterprise and small, medium and corporate customers.

Last week, Microsoft had described a realignment of its sales and marketing arm, which employs about 50,000 people worldwide.

The company now employees around 121,000 people around the globe and this restructuring of their organisational goals will see a minor percent of employees being let go. While some workers are said to get other jobs within the software company itself.

The decision comes as Microsoft moves to push services like Azure to the fore.

Share

Related News