News Worms
News Worms


Microsoft Is Cutting 3000 Jobs

Microsoft Is Cutting 3000 Jobs

The layoffs will only hit Microsoft's sales staff, and the 3,000 jobs lost represent around 10% of Microsoft's global sales force.

Sales of Azure, Microsoft's cloud-services product, grew 93% last quarter. That business has been booming, with Azure's sales almost doubling last quarter.

While Business Insider does not have verified access to the company managed chat app Blind, chatter about conference room bookings and schedules has surfaced from the more than 25,000 user base over at Microsoft.

"Microsoft is implementing changes to better serve our customers and partners", said Microsoft spokesperson in a statement to CNBC. Microsoft declined to disclose how many employees are being let go. Some of Microsoft's efforts in the reorganization of its sales teams will result in several positions being shifted, refocused or combined.

In an internal email last week, Judson Althoff, a Microsoft executive vice president, described the reorganization and its rationale. Around 18.5 percent of Microsoft employees are in sales roles. Its main rival for cloud dominance is Amazon - which is the market leader with its Amazon Web Services - but Microsoft's strong growth has cheered investors and impressed analysts.

The company announced yesterday that it would be going through a major reorganisation that will include a series of layoffs, mainly affecting sales employees.

Nadella, who came up through the firm's cloud division, has narrowed Microsoft's focus and doggedly trimmed the company's workforce. Rumors of these Microsoft jobs being at risk had been around for quite a while and Microsoft has finally confirmed them today. It's unclear how these changes will impact the Microsoft channel ecosystem in the future, however. At the time he stated his intention of turning Microsoft into a cloud services company, and has made good on that promise with the company now issuing updates on a near-weekly basis.

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