Published: Sat, July 08, 2017
Technology | By Ramiro Moody

Microsoft announces sales force reorganization that'll impact thousands of jobs

Microsoft announces sales force reorganization that'll impact thousands of jobs

The company today acknowledged the move, reported last week by the Puget Sound Business Journal and confirmed today by CNBC.

Confirming those reports, Microsoft in an email response to an AFP inquiry, said, "We are taking steps to notify some employees that their jobs are under consideration or that their positions will be eliminated". In a statement to CNBC, Microsoft said that the job losses would predominantly affect those on its sales teams.

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

The report added that Microsoft was going to specifically focus on how it sells its cloud-services product, Azure.

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Microsoft did not give much in the way of specifics regarding the job cuts, but we do know that the majority of them appear to be related to sales.

Some reports also claim that Microsoft workers were notified yesterday if their current job was affected or not. Microsoft said that it would cut about 4,000 jobs in its sales and marketing department.

Microsoft is reportedly cutting up to 3,000 staff globally as it focuses on the competitive cloud computing sector.

If history is of any lesson, this is nothing unusual for Microsoft as in recent years the company has announced a reduction of headcounts typically in July - a time when it ends its fiscal year. That reshuffle saw several of those teams move under the command of Judston Altoff, executive vice president of Microsoft's Worldwide Commercial Business Group. All too often, we see dying internet companies trying to cling to the business model they know and love (ahem, Yahoo!). Overall the Intelligent Cloud segment, which includes the servers & cloud services business and the enterprise services business, reported an 11% increase in revenue for the three months period to $6.76 billion, as compared to $6.09 billion for the same period previous year. However, Microsoft insisted that it would repurpose employees as much as possible into new roles.

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