07 July, 2017
The layoffs come as the United States software colossus refocuses its sales force on making Microsoft a pivotal part of businesses relying on cloud computing, according to media reports. "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 is expected to announce a major reorganization of its sales team today that will place renewed focus on its cloud-based products and will result in potential layoffs. That business has been booming, with Azure's sales almost doubling last quarter. When asked about cuts during a conference call, Microsoft President Brad Smith had no comment on Thursday. Microsoft declined to disclose how many employees are being let go.
The layoffs come at a hard time for Microsoft, as a major shift in strategy is forcing the company to rethink its identity. 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.
"Microsoft wants in on that billion users: "The company, as Bloomberg reports, called the cloud computing sector a "$4.5 trillion market opportunity" in a Monday staff email. Approximately 3,000 people could be laid off as part of the reorganization, largely in sales.
White House pays women 80 cents for every dollar paid to men
The disparity appears to be directly linked to the question of who works in the upper ranks of the White House staff. Across the country, women earn 82 cents for every dollar men take home, according to the Labor Department.
CNBC reported that layoffs would cut up to 3,000 employees.
With super-cloud computing platforms, resources can be focused on refining and supporting a single version of operating software instead of versions released every year or so to be installed on machines in homes or businesses, he reasoned. The company plans to use employees who are more knowledgeable about specific products in order to better sell larger packages.
However, Microsoft is still lagging behind Amazon Web Services in the sector. Around 18.5 percent of Microsoft employees are in sales roles.
Satya Nadella, chief executive officer of Microsoft, speaks during a Microsoft launch event to introduce the new Microsoft Surface laptop and Windows 10 S operating system, May 2, 2017 in NY. Previous year alone, more than 7500 people were let go by Microsoft.