After several rumors sparked recently of Microsoft’s plan to cut jobs, the tech giant finally confirms it. Microsoft will let go of less than 10% of Microsoft’s sales force, which amounts to approximately 3,000 jobs. Following the news, Microsoft stock has taken a slight hit, but nothing too worrisome.
Microsoft issued the following statement to CNBC about the layoffs,
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.
Such an act from Microsoft can be expected, as they are trying their best to pay more attention to the cloud to rival the likes of Amazon and Google. The change in strategy proposed by Microsoft CEO Satya Nadella aims to set more focus to the cloud. Their cloud business has grown significantly in recent quarters, with Azure having a 93% growth since last quarter.
Reorganization around this time of the year is not uncommon for Microsoft. The company’s fiscal year ended on 30th June, and a new one has begun.
The lay-offs are mostly concerned with employees working outside of the United States, thus the number is relatively low compared to the 121,000 employees around the globe that Microsoft has.