Microsoft to reorganize sales and marketing teams

Microsoft set to unveil major reorganization July 5

The layoffs, which will be needed due to redundancies in the reorganized sales division, will be "major" according to reports.

The revenue report by Microsoft showed gains in cloud and business service operations, which offset a drop in "personal computing".

This picture taken on on May 25, 2016 shows Microsoft's Finnish headquarters in Espoo.

Bloomberg says the latest reorganization could see Microsoft announce substantial layoffs, but a later report from ZDNet's Mary Jo Foley said the number of jobs to be cut may not be so big.

Bloomberg also reported a similar thing about Microsoft earlier this week and this new report is in line with that.

Microsoft is reportedly planning massive layoffs, set to announce thousands of job cuts this week in a bid to restructure its salesforce. The three units titled Enterprise Operating Unit, Enterprise Services and Commercial Software Engineering teams and Commercial Software Engineering will all work closely with counterparts Marketing and Operations and the technical core group to offer sales and support for all business types.


Each of the companies has also been investing in artificial intelligence which can make services hosted in the internet cloud more intuitive and insightful when it comes to handling data or catering for the needs of users.

Microsoft had more than 121,000 employees at the end of March, the last time the company disclosed its head count.

Althoff said in an interview with the Seattle Times previous year that he wanted to pivot Microsoft into focusing first on Azure, its cloud computing platform, over other older services. 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.

CNBC reached out to Microsoft for comment but a spokesperson was not immediately available. Inside sources said "smaller personnel changes" may impact other sections of the company. The situation was similar in July of 2015 when Microsoft made 7,800 job cuts related to their failed forays into the smartphone market.

Microsoft CEO Satya Nadella carved up Turner's responsibilities after his departure.

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