Microsoft Reorganization Aims to Boost Cloud Business

Microsoft on Thursday started the process of laying off thousands of employees, cuts that fall largely on the technology giant's sales force.

In this round of layoffs, up to 3,000 employees will be impacted by the reorg; most of the cuts will come from outside the United States and as expected, impact the Sales organization.

Microsoft has notified some employees about the reductions, the source said. Like all companies, we evaluate our business on a regular basis.

Microsoft has increased attention on the Azure cloud platform, which achieved a 93% sales growth last quarter but still stands behind market leader Amazon Web Services.

"Microsoft is implementing changes to better serve our customers and partners", a company spokesman said.

These changes point to a goal of focusing more intently on Microsoft's growing cloud computing business.

Microsoft has well over 100k employees and they are frequently buying new companies which adds additional overhead to the organization. Fortunately, as Business Insider and All About Microsoft has reported, not everyone scheduled for meetings today will be let go.

The news came as its cloud businesses continue to perform well.

The company announced yesterday that it would be going through a major reorganisation that will include a series of layoffs, mainly affecting sales employees.

As you know, Microsoft is reorganizing its broader corporate structure to capitalize on cloud computing. Most of the jobs cut at the time were related to Nokia. Microsoft's commercial cloud run rate hit $15.2 billion during the March quarter, up from $14 billion in the previous quarter.

'You look at Microsoft, and you realize that certain things that worked in the past are not gong to be relevant in the future, ' Chowdhry said. It allows companies to do everything from hosting websites and email to streaming favorite videos and delivering on-demand software.

  • Joe Gonzales