Microsoft to lay off thousands in sales, marketing reshuffle

Microsoft to lay off thousands in sales, marketing reshuffle

Microsoft to lay off thousands in sales, marketing reshuffle

Microsoft is in the process of notifying employees that their jobs are "under consideration", or that their positions will be eliminated, the spokesman said. "Like all companies, we evaluate our business on a regular basis", a Microsoft spokesperson says.

According to The Verge, Microsoft's cloud and server businesses have been fuelling revenue recently, with server products and cloud services revenue up 15 per cent and Azure revenue itself growing by 93 per cent in the recent quarter. Intel began a similar transition past year, eliminating 15,000 jobs to reduce the company's dependency on the fading PC market.

CNBC reports the company could cut around 3,000 jobs, about 10 percent of its total sales force.

Disappointing sales of Microsoft's Surface computer line, which has plunged 26 per cent and dragging down PC sales by 7 per cent, have undercut fiscal third quarter results, announced in April.

"These moves will bode better for Microsoft and its customers", Patrick Moorhead, principal analyst at Moor Insights & Strategy, told NBC News. And an article in Bloomberg Friday citing "people familiar with the matter" said the changes would affect Microsoft's Worldwide Commercial Business and the global sales and marketing group.

In an internal email last week, Judson Althoff, a Microsoft executive vice president, described the reorganization and its rationale.

Microsoft said a significant majority of jobs expected to be eliminated are outside the U.S.

New capabilities are being built into the cloud services, notably big data analysis and artificial intelligence capabilities.

The firm said its "intelligent cloud" products generated $1.7bn (£1.3bn) in revenue for the nine months to the end of March, driven by doubling revenue from its cloud computing platform Azure. Microsoft announced a previous round of almost 3,000 job cuts last July to reflect its changing business focus.

Related news