Microsoft cuts 3000 jobs to focus on Azure

Microsoft confirms layoffs, up to 3000 jobs reportedly affected

Microsoft confirmed it would be laying off a significant portion of its sales force, but reports say most of the cuts will involve employees outside the U.S. 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.

A spokesperson for Microsoft tells CNBC that like all companies, they evaluate their 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 said in a statement.

Microsoft said revenue from its "Intelligent Cloud" rose 11 percent from a year earlier to $6.8 billion. Most of the changes would reportedly affect employees outside of the United States.

In June, the company consolidated some of its cloud, artificial intelligence, and data platform business units, ZDNet reported.

Microsoft has notified some employees about the reductions, a source said. Reports indicate that Microsoft would be terminating somewhere between 3000 to 4000 Microsoft Jobs. The company plans to use employees who are more knowledgeable about specific products in order to better sell larger packages.

In an internal email last week, Judson Althoff, a Microsoft executive vice president, described the reorganization and its rationale. The good news? This shouldn't have any major impact on Microsoft's products and services, as when Microsoft restructured its phone business two years ago.

The company is now concentrating on selling recurring subscriptions for software accessible on multiple devices, a rapidly growing trend known as 'cloud computing'. Its main rival for cloud dominance is Amazon - which is the market leader with its Amazon Web Services - but Microsoft's strong growth has cheered investors and impressed analysts.



Otras noticias