Microsoft Could Lay Off Thousands Of Employees Amid Big Shake-Up

Microsoft to lay off thousands of employees worldwide to restructure its sales force

The plan may be publicly announced as soon this week with affected employees notified in the coming days.

The reorganisation will include a merger involving Microsoft's "enterprise customer unit and one or more of its SME-focused divisions", TechCrunch reports.

Microsoft has reportedly confirmed that it will be reorganising its sales and marketing teams but has not addressed claims that "thousands" of jobs could be axed. Although it is still a priority for the company to sell the software on its desktop computers and laptops, Microsoft's new target focuses on getting consumers sign up to the service itself.

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While Microsoft already has cloud offerings, they are primarily tied to its primary products and services, which are the Windows operating system and software for personal and business PCs like Office365 and OneDrive.

Microsoft Corp. reorganized its sales and marketing operations in a bid to woo more customers in areas like artificial intelligence and the cloud by providing sales staff with greater technical and industry-specific expertise. Microsoft's 2017 third quarter results, released in April, stressed the importance of its cloud platforms and disclosed revenue growth of 93% year-on-year for Azure. Inside sources said "smaller personnel changes" may impact other sections of the company.

The reports associated with the cut in the workforce were linked with an increased emphasis on cloud service within Microsoft's sales teams worldwide.

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A Microsoft spokesperson told Reuters that the company "is implementing changes to better serve our customers and partners".

The changes, which will took effect from February 1, were expected to affect its sales, partner, and services teams, and see both units come together as one under its Worldwide Commercial Business, led by executive vice-president, Judson Althoff.

As Microsoft moves towards the new financial year, Microsoft employees would encounter a shocking reality.

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Considering that the end of Microsoft's fiscal year falls on July, the overhaul is actually right on schedule.

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