Microsoft Corporation (NASDAQ:MSFT) is reportedly planning to axe thousands of jobs as part of a global sales reorganisation. The source added an announcement would be forthcoming this week.
Microsoft, naturally, has declined to comment on the speculation.
Yet-another round of redundancies are being planned at software giant Microsoft, according to reports, as it continues to plot a course away from the sale of packaged software towards cloud services.
Media reports have said layoffs are in order with as many as "thousands" of Microsoft employees set to be affected.
The market for cloud services has been heating up in the last few years, with Amazon Web Services, Google Cloud Platform and Microsoft's Azure competing for a share of the pie.
House vote would mirror Texas' crackdown on 'sanctuary cities'
House of Representatives on Thursday and gathered criticism from opponents who claim they are a threat to civil liberties. It would also reduce funding to cities which limit the number of illegal immigrants they turn over the authorities.
Ultimately, these changes most likely will see the company ramp up its efforts to sell subscription-based cloud services, a fast-growing business for Microsoft with a $15.2 billion run rate. The reorganising in the company includes simplifying the customer units to two segments only - enterprise and SME customers. There may be other smaller personnel changes in other parts of the company too, one of other people said.
A Microsoft spokesperson said as quoted by AFP, "Microsoft is implementing changes to better serve our customers and partners".
"Our results this quarter reflect the trust customers are placing in the Microsoft Cloud", Microsoft CEO Satya Nadella said in the earnings statement. The Wall Street Journal suggested redundancies could occur further down the line, after Microsoft has settled into the new structure.
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.
This is definitely not the first time that Microsoft is laying off its employees.