Saturday, 24 February, 2018

Microsoft plans cuts in reorganisation

Image Credit Stephen Brashear  Getty Images  Microsoft Image Credit Stephen Brashear Getty Images Microsoft
Rosalie Gross | 07 July, 2017, 00:57

The tech company is slashing thousands of jobs, mostly in sales positions, according to a source familiar with the matter. "This can result in increased investment in some places and, from time-to-time, re-deployment in others", a Microsoft spokesperson told CNBC. Intel began a similar transition previous year, eliminating 15,000 jobs to reduce the company's dependency on the fading PC market.

Around 3,000 jobs will be cut and the sales force restructured to focus on selling its cloud-based business product, Microsoft Azure.

"Microsoft is implementing changes to better serve our customers and partners", Microsoft said in a statement to USA TODAY.

Microsoft plans to shed thousands of jobs in a major reboot to focus on its fast-growing cloud-computing business.

"From large multinationals to small and medium businesses to non-profits all over the world, organizations are using Microsoft's cloud platforms to power their digital transformation", Nadella said when the company reported its earnings for the first three months of this year.

There will also be a few cuts at the firm's headquarters in Redmond, Washington, the Seattle Times reported.

Microsoft has 121,000 employees on its payroll with 71,000 of them living in the US.

The reorganization was announced internally on Monday.

In fact, some of that report's highlights show just how profitable the cloud service businesses have become, with Azure almost doubling its revenue growth from the previous quarter. "This is classic 'rotation, ' where Microsoft is replacing people with skills on traditional enterprise offerings with those more skilled in the cloud, AI and vertical apps".

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.

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

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