Microsoft Cuts Thousands of Sales Jobs; Lays Focus on Cloud

Prayank

Rumours about Microsoft cutting off jobs globally in its sales team caught the wind earlier this week and the company has now confirmed that they’ll be laying off thousands of employees from its global sales team as it refocuses on Cloud.

Microsoft’s cloud computing division, Azure, has seen modest growth in the recent past and the company is being reorganised to give competition to its rivals in the cloud business — Amazon and Google.

…today, we are taking steps to notify some employees that their jobs are under consideration or that their positions will be eliminated.

Reportedly, the company will lay off close to 10 percent of its total sales force — over 3,000 jobs, more than 75 percent will be from among those employed outside the US.

In a statement to the CNBC, a Microsoft spokesperson said, “Microsoft is implementing changes to better serve our customers and partners. Today, we are taking steps to notify some employees that their jobs are under consideration or that their positions will be eliminated. Like all companies, we evaluate our business on a regular basis. This can result in increased investment in some places and, from time-to-time, re-deployment in others.”

The company currently 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.

Refocusing on Azure’s sales potential comes at the right time for Microsoft, as with the gradual shift the industry is witnessing towards cloud computing, their cloud business grew by over 93 percent in the third quarter.

This goes to show that Microsoft isn’t cutting overall cost incurred by the company but simply reorganising in a way that better suits the prospective growth of their cloud platform.

If history is of any lesson, this is nothing unusual for Microsoft as in recent years the company has announced a reduction of headcounts typically in July — a time when it ends its fiscal year.

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Prayank

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Prayank

Bike enthusiast, traveller, ManUtd follower, army brat, word-smith; Delhi University, Asian College of Journalism, Cardiff University alumnus; a journalist breathing tech these days.