Global tech giant Microsoft is planning to let go thousands of its employees associated with its sales arm the world over. The move is aimed at an organisational reshuffle so as to refocus on cloud software sales. The reorganization will include a merger between its enterprise customer unit and one or more of its SME focused divisions, a source said to TechCrunch. Microsoft has refused to comment on the matter.
The announcement is likely to be made sometime this week, according to Bloomberg.
Many news organisations around the world had reported the scheduled lay-offs being done to enhance cloud-services related operations of Microsoft Corp on a global scale. The job cuts would be the most important in the sales arm in years and will also affect marketing operations on a local scale in many countries, a source told Bloomberg.
The reshuffle could possibly be due to the captaincy changing hands last year. After COO Kevin Turner departed, Judson Althoff and Jean-Philippe Courtois were appointed heads of global sales and marketing departments. TechCrunch claims that Althoff has been critical of past modus operandi of the division and hoped to shift focus towards Azure. The report adds that given the past trends, July has usually been the month when Microsoft had made downsizing announcements, as that is when its financial year ends.
The tech giant had in 2016 declared that it would downsize the company by 2,850 employees, which included 900 sales jobs.