Science

Microsoft announces sales force reorganization that'll impact thousands of jobs

Microsoft announces sales force reorganization that'll impact thousands of jobs”

In a move to focus on the growing cloud business, Microsoft on Thursday announced a major reorganisation that will lead to almost 3,000 job cuts in sales staff outside the U.S., media reported. Like all companies, we evaluate our business on a regular basis.

Reports from last week suggested this was going to happen, and that Microsoft was going to specifically focus on how it sells its cloud services product, Azure.

Per its restructuring, Microsoft is expected to concentrate more on its Azure cloud service and small-to-medium-size business clients.

MICROSOFT IS REPORTEDLY planning to axe 3,000 staff "outside of the US".

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"Microsoft is implementing changes to better serve our customers and partners", a Microsoft spokesperson wrote in a statement.

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

Given the size of the Microsoft work force - the company has 71,000 US -based employees and 121,000 employees internationally - these layoffs represent a comparatively small move. Intel began a similar transition a year ago, eliminating 15,000 jobs to reduce the company's dependency on the fading PC market. "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".

Nadella, who came up through the firm's cloud division, has narrowed Microsoft's focus and doggedly trimmed the company's workforce. The company told CNBC that the cuts aren't about reducing costs but rather, changing how they handle sales.

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All three executives on Monday notified employees of a reorganisation, but did not mention layoffs. Last July, Microsoft said it would cut 2850 positions.

The technology giant cut 7,800 jobs in 2015, and 4,700 a year ago.

In February, Microsoft announced the creation of 600 jobs for Dublin with the bulk of the positions at a new inside sales centre at the company.

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