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Microsoft Cloud focus casts job loss shadows

05 July 2017

The technology giant cut 7,800 jobs in 2015, and 4,700 past year.

In January, Microsoft made some other hefty organisational changes, combining its Small and Mid-Market Solutions & Partners (SMS&P) and Enterprise Partner Group (EPG) business units in an attempt to streamline business processes.

"Given the Windows 10 Creators Update provides the latest security protections to help keep you safe, we want to help update your device as soon as possible", Cable said. Company executives have now communicated to employees, via a memo, that there will be a shake-up in its sales and marketing teams but, interestingly, didn't mention the rumored layoffs. The sales, partners and services team at Microsoft will continue to focus on new areas such as Data and AI, Apps and Infrastructure, Business Applications and Modern Workplace.

The change comes as Microsoft focuses more on selling its cloud services instead of licenses for boxed software.

As part of the restructuring, the company is about to lay off thousands of employees, according to TechCrunch.

While it is understood that Courtois, Althoff and Capossela have all sent memos about the changes to staff, the company is yet to publicly elaborate on the changes.

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Bloomberg is also reporting that a Microsoft staffing shuffle is planned, with the company looking to reorganise its business so that it can "better focus on selling cloud software".

For its part, Microsoft has not commented on the layoffs or confirmed numbers.

Microsoft was recently rumored to be reorganizing its sales department.

If history is of any lesson, this is nothing unusual for Microsoft as in recent years the company has announced reduction of headcounts typically in July - a time when it ends its fiscal year.

"Our results this quarter reflect the trust customers are placing in the Microsoft Cloud", Microsoft CEO Satya Nadella said in the earnings statement.

After numerous IT giants are said to have laid off hundreds of employees in the last few months, Microsoft too seems to be jumping on the bandwagon. The company has been trying to get its salesforce to convert more purchases of these products as the technology industry as a whole moves to the cloud-first model.

Microsoft Cloud focus casts job loss shadows