Thursday, 27 July, 2017

Microsoft officially announces major reorganization for its sales team internally

Microsoft to lay off thousands of employees worldwide to restructure its sales force Microsoft to fire thousands of staff – Report
Cecilia Poole | 05 July, 2017, 00:27

The magnitude of the potential layoffs is unclear, but the WSJ says they will likely occur in offices all around the globe.

Microsoft has not commented on the reports, but the layoffs are expected to be announced over the next week or so.

This picture taken on on May 25, 2016 shows Microsoft's Finnish headquarters in Espoo.

Microsoft informed employees Monday the company plans to restructure its sales and marketing operations but some fear the reorganization will include massive jobs cuts.

Moreover, the structural reorganization will lead to merger of Microsoft's enterprise customer unit and one or more of its SME focused divisions. Yet the WSJ reports that thousands of jobs could be cut down the line as a result of the sales shuffle.

As the company's fiscal year for 2017 approaches this month, Microsoft's decision to make changes to the business structure comes at the right time for the business.

Althoff said Microsoft, going forward, is targeting six high-priority vertical markets: Manufacturing, Financial Services, Retail, Health, Education and Government.

But The Seattle Times has previously reported that the end of March saw the hiring of 121,500 people, with most employed at Microsoft's Washington branch. Microsoft already started an internal reorganization back in January this year and the upcoming layoffs will apparently be the next step moving forward. There may be other smaller personnel changes in other parts of the company too, one of other people said. The changes are set to be announced this coming week.

Since that first release of Windows 10, Microsoft has rolled out two major updates: the Anniversary Update, which came out last summer, and this spring's Creators Update.

We've also heard that Microsoft CEO Satya Nadella is still working on improving the most important metric of cloud computing: getting companies to use Azure instead of just adding a limited number of dollars of Azure credits to their overall enterprise agreement contracts.

The departures of several employees this time are largely due to Microsoft shifting its focus to the cloud services, which will result in many from the sales group having to leave the company.

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