Microsoft confirms major job cuts

Microsoft Is Planning Sales Reorganization Focused on Cloud

A PTI report states, "Technology giant Microsoft is undertaking a major reorganisation in its sales and marketing units that will likely see the company cutting about 4,000 jobs from its workforce, mostly outside the U.S.".

The company announced yesterday that it would be going through a major reorganisation that will include a series of layoffs, mainly affecting sales employees. The 3,000 jobs cut accounts for around 10% of Microsoft jobs and it is said that the vast majority of the cuts will mainly take place outside of the USA, with 75% job cut overseas.

Microsoft has confirmed layoffs that could affect up to 3,000 jobs.

A Microsoft spokesperson said in an email on Thursday that the company is implementing changes to better serve its customers and partners.

Microsoft has confirmed it will be culling a few jobs out of its 121,000 strong employee base and that it is part of its regular business evaluation steps.

Microsoft is to cut "thousands" of jobs worldwide as it attempts to beef up its presence in the cloud computing sector. It's understood that the vast majority of the job losses will be in sales, and staff outside the United States will be hardest hit. However, Microsoft insisted that it would repurpose employees as much as possible into new roles.

That subscription element of Microsoft's strategy has been particularly played up since Satya Nadella replaced Steve Ballmer as the company's CEO in 2014.

The Verge notes Microsoft's server and cloud revenue was up 15% in the last quarter, alongside Azure revenue up by 93%.

The company said revenues from "Intelligent Cloud" rose 11 percent from a year earlier to $6.8 billion and that its Office commercial products and cloud services revenue increased seven percent.

Microsoft Ireland is also set to move into a new campus in Leopardstown before the end of the year, in a €134 million investment in the company. Globally, the company is powered by over 120 thousand workers around the world.

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