Wednesday, 22 November, 2017

Microsoft May Cut 3000 Jobs, Says CNBC

Microsoft CEO Satya Nadella Microsoft is expected to announce a major restructuring of its cloud services today with thousands of jobs on the line
Cecilia Poole | 07 July, 2017, 00:24

Microsoft is planning a restructuring Wednesday that will include thousands of layoffs, largely in the sales department, CNBC reported.

The cuts amount to less than 10 percent of its total sales force, Microsoft said, adding that around three-quarters of affected employees reside outside of the US.

The job cuts will be primarily focused in the company's sales and marketing organizations as part of a reorganization the tech giant announced internally earlier this week.

Microsoft's cloud business has been booming over recent quarters - Microsoft noted Azure sales growth of 93 percent last quarter. Key areas of opportunity, he said, included expanding its cloud offerings in data analysis and artificial intelligence, and helping companies in every industry to become digital businesses, using Microsoft tools.

With that many employees, it's likely that even with Microsoft's plans to cut jobs, the size of its entire workforce will remain just as strong as before.

Microsoft has 71,000 employees in the United States and 121,000 employees around the globe.

Microsoft's change in strategy had a ripple effect on its sales, prompting a move from on-site support to telephone support, says long-time Microsoft analyst Jack Gold.

"Microsoft is implementing changes to better serve our customers and partners", a Microsoft spokeswoman told Reuters. Layoffs at Microsoft aren't unusual at this time of year, what with the company's fiscal year ending June 30.

Chief executive Satya Nadella has been focusing on the firm's cloud unit, which has been a source of strength for Microsoft. "This is classic 'rotation, ' where Microsoft is replacing people with skills on traditional enterprise offerings with those more skilled in the cloud, AI and vertical apps".

Microsoft will effectively end its financial year with its scheduled fourth quarter results announcement on July 20, with major increases in revenues from cloud services expected.

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