A PTI report states, "Technology giant Microsoft is undertaking a major reorganisation in its sales and marketing units that will likely see the company cutting about 4,000 jobs from its workforce, mostly outside the USA". The company is reorganizing its sales team at its headquarters in Redmond, and the changes are also affecting local teams throughout the world.
The proposed job cuts reveal that the positions which will be under the company's "consideration" will amount to less than 10 percent of Microsoft's total sales workforce. Overall, Microsoft has 71,000 employees in the USA, and a total of 121,000 employees. Given that the company has confirmed that less than 10% of the sales force will be laid off, it looks like there will about 2000 job cuts worldwide.
Microsoft brought out its plans to cut several thousand jobs as part of a reorganization process in its sales and marketing division, while it sets focus on the cloud.
A spokesperson for Microsoft tells CNBC that like all companies, they evaluate their business on a regular basis.
Microsoft cut 7,800 jobs in 2015, and 4,700 previous year.
Commenting in April, Nadella stated: "Our results this quarter reflect the trust customers are placing in the Microsoft Cloud".
Microsoft has not given a statement whether it will offer the affected employees any severance.
The restructuring is apparently going to be announced later this week and will impact Microsoft's global sales marketing group.
The decision comes as Microsoft moves to push services like Azure to the fore. All too often, we see dying internet companies trying to cling to the business model they know and love (ahem, Yahoo!). "This will enable Microsoft to better address cloud-native products, services and customers", he said.
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