Microsoft To Lay Off Thousands, Enterprise, SME Sales Groups Could Be Affected

Posted July 05, 2017

Last July, Microsoft announced plans to cut an additional 2,850 jobs over the year, largely related to its exiting the smartphone business. Cloud revenue per employee is lower than the company would like, some people close to the matter said. The magnitude of the potential layoffs is unclear, but the WSJ says they will likely occur in offices all around the globe.

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.

But Microsoft may not play second fiddle anymore, assuming the re-org achieves the efficiency with which Microsoft's sales teams can sell cloud software.

Many news organisations around the world had reported the scheduled lay offs about two days, being done to enhance cloud-services related operations of Microsoft Corp on a global scale. The restructuring will also include an organizational merger of its enterprise customer unit with its one or more SME-focused divisions.

Microsoft is likely to layoff thousands of its employees in plans to reorganise the company's sales group to boost cloud computing services.

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Notably, current business-sales chief Althoff expressed his dissatisfaction over the sales techniques of the company in an interview.

"This will enable our commercial customers to get even more value from our offerings and to drive success, as well as their own digital transformation", a Microsoft spokesperson told Moneycontrol in an email reply seeking comment. Microsoft has chose to rearrange its sales department and concentrate more towards a cloud-focused system. Instead, it's another step towards the new business model Microsoft has been pursuing under CEO Satya Nadella.

Last month, in a research note to investors, Brent Bracelin, analyst at Pacific Crest Securities, predicted Azure could surpass AWS in revenue this year, which would mark the first time Azure - once a laggard - would transition into a cloud leader.

"This news surrounding Microsoft's major reorganization of its sales team, to expand its cloud based offering should come as no surprise".