Microsoft confirms layoffs, says it will eliminate up to 3000 jobs

Microsoft Is Planning Sales Reorganization Focused on Cloud

The proposed job cuts reveal that the positions which will be under the company's "consideration" will amount to less than 10 percent of Microsoft's total sales workforce.

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

The spokesperson also told PTI in a written format that: "We want to notify some employees that their jobs are under the question mark or they will be shown the exit doors. This can result in increased investment in some places and, from time-to-time, re-deployment in others", he added.

Microsoft announced Wednesday that it is laying off as many as 3,000 employees, according to CNBC. Azure, Microsoft's main cloud service, saw a 93 percent increase in sales previous year. Given that the company has confirmed that less than 10% of the sales force will be laid off, it looks like there will about 2000 job cuts worldwide.

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.


Whether it will impact Microsoft workers in India is still not clear.

Microsoft's fiscal year ended on 30 June, so the timing of the cutbacks could be tied to the company's move into a new fiscal year, which started on 1 July.

The sales teams are experienced in selling desktop packages but chief executive Satya Nadella has been pushing the company's focus to cloud services since he took over in 2014. Almost 71,600 of them work in the USA, with the remainder elsewhere. Firing an estimated 3,000 people normally isn't a sign of good health for a company, but for Microsoft, it's actually a good thing.

Launched in 2010 - seven years ago - Azure is the vanguard for all Microsoft's cloud-based businesses.

Microsoft is going to be expanding on its strategy at next week's Inspire partners summit in Washington, DC, and more layoffs are rumored to be coming in the Autumn.

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