Microsoft to cut 3000 jobs to boost cloud growth

Posted July 08, 2017

After about a week of speculations, Microsoft has confirmed that there will be major reorganisation at the company, including thousands of layoffs, reports CNBC.

Microsoft has notified some employees about the reductions, the source said.

Microsoft has confirmed it will be culling a few jobs out of its 121,000 strong employee base and that it is part of its regular business evaluation steps. "This can result in increased investment in some places and, from time-to-time, re- deployment in others", said an email from the abovementioned spokesperson. Sales of Azure, Microsoft's cloud-services product, grew 93% last quarter.

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That's why, despite the pain, Microsoft losing 3,000 sales employees to focus on cloud services, R&D, and enterprise support is the best thing the company could do in this position. "(Microsoft) faces stiff competition from not only Amazon and Google for cloud infrastructure, but also Oracle, Salesforce and SAP for cloud software". The company has confirmed that a number of people now employed with Microsoft jobs will soon be laid off. Yet in between the heavily hyped launches of services like updates to their Windows 10 operating system or the latest version of their Surface Pro hybrid laptop, it still can not help but remind its people that it is still a tech company that has its job positions riding on the whims of the latest innovation.

This marks the second year in a row Microsoft announced big layoffs near the beginning of its fiscal year on July 1. The sales growth for Microsoft's cloud business has been vastly improving in recent months and year. "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.

Last week, Microsoft had described a realignment of its sales and marketing arm, which employs about 50,000 people worldwide.

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The tech company said revenue from its "Intelligent Cloud" rose 11% from a year earlier to $6.8 billion. Almost 71,600 of them work in the US, with the remainder elsewhere.

The software giant did not specify how many jobs would be cut.

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