Microsoft Planning To Lay Off Thousands In Reorganization

Microsoft planning new round of redundancies that could see thousands lose their job as the company shifts away from software and re-orientates itself towards cloud services

An announcement is said to be forthcoming this week.

With reports suggesting that technology giant Microsoft was looking to shed thousands of employees, it was not immediately clear if its Indian workforce will be impacted.

This picture taken on on May 25, 2016 shows Microsoft's Finnish headquarters in Espoo. Bloomberg did not report on the number of potential layoffs, but noted that the changes were likely to be announced this week.

Microsoft was contacted for comment, but declined. Microsoft is making headway into the cloud services sector now dominated by Amazon Web Services and wants to further its cause with the proposed adjustment of its sales force which has typically focused on selling licensed software for PCs and servers.

Each of the companies has also been investing in artificial intelligence which can make services hosted in the internet cloud more intuitive and insightful when it comes to handling data or catering for the needs of users.

Microsoft's fiscal year ends in July and this year it is ending on Friday; which would be the first year for Althoff and Courtois heading the sales and marketing for Microsoft.

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Microsoft was recently rumored to be reorganizing its sales department.

The reshuffle could possibly be due to the captaincy changing hands previous year.

A Microsoft spokesperson said as quoted by AFP, "Microsoft is implementing changes to better serve our customers and partners".

Calling the global shifts "some of the most significant" in the company in years, Bloomberg suggests marketing divisions and sales divisions will be impacted hardest.

One of the key areas of focus seems to be getting its "modern workplace solution" software into peoples' homes, too. The I-T major had cut 7,800 jobs in 2015, and 4,700 a year ago. It targeted 2,850 job cuts, 900 of which were employees of Microsoft's sales group.

Microsoft CEO Satya Nadella carved up Turner's responsibilities after his departure. The Wall Street Journal suggested redundancies could occur further down the line, after Microsoft has settled into the new structure.

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