Microsoft layoffs: Impact on Indian jobs remains unclear

Microsoft to fire thousands of staff – Report

Microsoft to fire thousands of staff – Report

The move follows a number of organisational changes introduced in January affecting Microsoft's sales and marketing teams. Cloud revenue per employee is lower than the company would like, some people close to the matter said.

The reports suggest that thousands of staff could be made redundant, with an official announcement coming later this week.

Althoff said in an interview with the Seattle Times past year that he wanted to pivot Microsoft into focusing first on Azure, its cloud computing platform, over other older services. This is likely as part of an effort to slowly move away from its software sales businesses and provide a boost to its burgeoning enterprise cloud services.

The change in thought process was evident from the fact that Microsoft hired more than 1,000 sales people with specialties in "cloud solutions", per The Seattle Times, which had quoted Althoff.

Calling the global shifts "some of the most significant" in the company in years, Bloomberg suggests marketing divisions and sales divisions will be impacted hardest.

Citing a source with knowledge of the restructure, TechCrunch reports "thousands" of staff could face the axe around the world.

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Microsoft reorganized its global sales force today to heighten its focus on selling cloud services instead of standalone pieces of software, according to The Wall Street Journal. A recent study found Microsoft to be ahead of the game already, in this regard. The restructuring is likely to "include an organisational merger that involves its enterprise customer unit and one or more of its SME-focused divisions", it said.

Microsoft declined to comment on the report.

The internal memo to workers did not mention layoffs but a company spokesman said "Microsoft is implementing changes to better serve our customers and partners", noting there was nothing to add beyond the statement regarding layoffs.

The purported layoffs set for this week would come just as Microsoft ends one fiscal year and enters another.

This is definitely not the first time that Microsoft is laying off its employees.

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