Microsoft is laying off thousands of workers as part of its recently confirmed restructuring plans.
According to numerous media reports, the company is laying off anywhere from 3,000 to 5,000 employees in its sales and marketing departments. Microsoft has confirmed the job cuts, but would not reveal how many employees would be impacted. CNBC, however, reported the cuts would equal roughly 10 percent of Microsoft’s total salesforce and most of the jobs would be outside the U.S.
“Microsoft is implementing changes to better serve our customers and partners,” a Microsoft spokesperson said in a statement to the media. “Today, we are taking steps to notify some employees that their jobs are under consideration or that their positions will be eliminated. Like all companies, we evaluate our business on a regular basis. This can result in increased investment in some places and, from time-to-time, re-deployment in others.”
The layoffs, which were expected to begin on Thursday, are due to Microsoft’s new focus on its cloud service Azure.
According to TechCrunch, the reorganization is about targeting enterprise and small and medium business owners rather than focusing on government agencies and large oil and gas and pharma corporations.
Rumors began swirling last week about Microsoft’s reorganization and were fueled by an internal memo Microsoft sent to its employees. The memo, which was obtained by GeekWire, said: “There is an enormous $4.5-trillion market opportunity across our Commercial and Consumer businesses. We are uniquely positioned to drive our customers’ and partners’ success by leading them through their digital transformations, and becoming their partner of choice. To help us do that, starting today, we begin to implement changes to our Commercial and Consumer models. These changes will position us to best meet the evolving needs of our customers and partners, and empower them to achieve more.”
The reorganization aligns with Microsoft starting its new fiscal year on July 1.