dglobalnews.com Layoffs likely as Microsoft shifts focus from software to cloud
Published: Wed, July 05, 2017
Tech | By Arthur Brown

Layoffs likely as Microsoft shifts focus from software to cloud

Layoffs likely as Microsoft shifts focus from software to cloud

Cloud computing is expected to be a $246.8 billion global industry by the end of 2017, a report from analysis firm Gartner said.

While the job cuts have been predicted for a while, it is only now that the company has spoken about it. "Microsoft is implementing changes to better serve our customers and partners", a Microsoft spokesperson told AFP.

Microsoft says it will now focus on two distinct areas: big enterprise customers, and then small to medium-sized businesses. The source added an announcement would be forthcoming this week.

Microsoft is to shed light on its workforce trimming and sales restructuring in the coming week, but has thus far yet to release any official statements or comments.

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.

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Yet-another round of redundancies are being planned at software giant Microsoft, according to reports, as it continues to plot a course away from the sale of packaged software towards cloud services.

Microsoft Corp.is about to announce an internal reorganization meant to boost sales of cloud services that could see it lay off a number of staff as early as Monday, according to one report.

Last summer, Microsoft announced plans to cut almost 3,000 jobs from its global workforce, with the majority of those linked to its exit from the smartphone space.

"This news surrounding Microsoft's major reorganization of its sales team, to expand its cloud based offering should come as no surprise".

Calling the global shifts "some of the most significant" in the company in years, Bloomberg suggests marketing divisions and sales divisions will be impacted hardest. The department to suffer the most impact is the Worldwide Commercial Business that operates under the leadership of Judson Althoff and Jean-Philippe Courtois, who both took over after the exit of former COO Kevin Turner. This move by Microsoft is most likely an attempt to reduce costs and improve revenue per employee.

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