As part of a major reorganization, thousands of positions shall be eliminated
Last Wednesday Microsoft announced a major reorganization that will affect the employment of “thousands”. In total, the job cuts will account for less than 10 percent of the workforce and 75% of those cuts will be positions outside of the U.S.
The cuts come as the company changes focus of how it will sell it’s cloud services. While these services saw a 93% growth last quarter, Microsoft wishes to focus on “employees who are more knowledgeable about specific verticals so they can sell bigger packages”.
In a statement to CNBC a Microsoft spokesman explained, “Microsoft is implementing changes to better serve our customers and partners. 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.”