Microsoft Wields The Ax As Focus Shifts To Cloud Platform

Microsoft Confirms Layoffs Restructuring
Microsoft Is Planning Sales Reorganization Focused on Cloud

07 July, 2017

According to reports, a majority of the job cuts will occur outside the U.S. Microsoft employed 71,000 people in the U.S. and a total of 121,000 employees as of March 2017. This can result in increased investment in some areas and, from time to time, re-deployment in other areas. Last year, the company cut almost 3,000 employees from its smartphone and sales teams.

Microsoft said revenue from its "Intelligent Cloud" rose 11 percent from a year earlier to $6.8 billion.

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

Going forward, Microsoft plans to "use employees who are more knowledgeable about specific verticals so they can sell bigger packages", the report notes.

Microsoft has announced a major reorganization including plans to layoff several thousand employees around the globe. At the time he stated his intention of turning Microsoft into a cloud services company, and has made good on that promise with the company now issuing updates on a near-weekly basis.

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Since taking over as chief executive in 2014, Satya Nadella has sharpened the company's focus on its cloud computing unit to counter a prolonged slowdown in the PC market.

"The shifts will be some of the most significant in the sales force in years", the report said.

The software giant did not specify how many jobs would be cut. Microsoft also stated that the company's goal isn't to cut costs but instead bring a change in how Microsoft handles sales.

Microsoft now has 1,200 full-time employees and 700 full-time contractors in Ireland.

The layoffs were expected to begin today, as part of a reorganization that finds the remaining sales team redirecting focus to its cloud service Azure. Microsoft Azure is a growing collection of could services that allow developers and IT professionals build, deploy and manage applications.

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