Is Microsoft Planning Layoffs as Part of Sales Overhaul?

Is Microsoft Planning Layoffs as Part of Sales Overhaul?

This isn't the first time that the Windows maker is announcing last minute layoffs.

Apparently, the rejig could include an organizational merger that involves its enterprise customer unit and one or more of its SME-focused divisions. The source added an announcement would be forthcoming this week.

Microsoft has declined to comment, but with its fiscal year coming to an end on July 7, industry observers believe the technology firm is likely to confirm the layoffs then.

The reorganization next week will refine the sales duo's roles, as well as boost the sales group's focus on cloud-computing services, according to the person familiar with the plans.

Althoff said Microsoft, going forward, is targeting six high-priority vertical markets: Manufacturing, Financial Services, Retail, Health, Education and Government.

Microsoft had more than 121,000 employees as of March 31 - up 6 percent from June 30, 2016, according to the company.

Microsoft is planning a restructuring of its global sales force to focus on its cloud-computing products and that may result in large-scale layoffs.

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A reorganisation of the tech giant's sales force and an increased focus on cloud software sales will lead to thousands of job losses.

"This news surrounding Microsoft's major reorganization of its sales team, to expand its cloud based offering should come as no surprise". There may be other smaller personnel changes in other parts of the company too, one of other people said.

A spokesperson for Microsoft Australia said only that the company is "implementing changes to better serve our customers and partners". In April 2017, Microsoft pledged to achieve $20bn (£16bn) in yearly cloud revenue by 2020.

"Our results this quarter reflect the trust customers are placing in the Microsoft Cloud", Microsoft CEO Satya Nadella said in the earnings statement.

If true, the move is likely to see Microsoft's A/NZ footprint hit in the changes, along with other regions.

Last month Microsoft quietly reshuffled several teams working in its cloud, enterprise and artificial intelligence research units.

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