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04 July 2017, 01:22 | Hattie Nash
Microsoft to fire thousands of staff – Report
Sales teams are likely to be most significantly impacted, insiders say, as Microsoft focuses its efforts more on selling cloud software.
While Microsoft has declined to comment, a report from TechCrunch claims that the layoffs might be the result of a renewed focus on activating cloud services for greater efficiency and productivity in the company's sales and marketing divisions.
The impending shake-up may be the result of executive changes within the past year.
Microsoft is streamlining its sales organization to focus on two groups of customers, GeekWire reported.
The company unveiled the steps in an email to staff Monday that was obtained by Bloomberg.
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Last week, reports noted that Microsoft would confirm its new plans this Wednesday.
Many news organisations around the world had reported the scheduled lay-offs being done to enhance cloud-services related operations of Microsoft Corp on a global scale. Numerous layoffs will be in the company's enterprise-focused sales force. More specifically, the company reportedly plans to improve how it sells its cloud services and software worldwide. Microsoft has been increasingly promoting its Azure Stack technology, which lets businesses run the company's cloud computing platform on their own servers instead of Microsoft's data centers. It is unclear where exactly the job cuts will take place, but no one is safe as Microsoft simply said these cuts will occur across the board.
Microsoft had also added to the payroll about 1,000 salespersons with specialties in selling Cloud-computing products, Althoff had earlier said.
The purported layoffs set for this week would come just as Microsoft ends one fiscal year and enters another.
In a recent research note, analyst Brent Bracelin forecasted that Microsoft Azure could overtake AWS in revenue this year, which would see it take the lead position for the first time.
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