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Microsoft Will Announce Layoff Thousands of Employees In order to Fuel the Cloud Growth

Microsoft Will Announce Layoff Thousands of Employees In order to Fuel the Cloud Growth
July 07
19:40 2017

Microsoft is a Microsoft Corporation that acts as a multinational American technology company & the headquarters have been situated in Redmond, Washington. This company is highly specialized in the development, manufacturing, selling, licensing & supporting the computer software, personal computers, consumer electronics & the related products. This company has been acting as the flagship company. This has been regarded as the world’s 1st & valuable company in the world.

Microsoft has revealed today that it will plan to cut the thousands of jobs as part of a reorganization process that will see the software giant focus its efforts on the cloud. This is done in order to increase the growth of the cloud. The layoffs are expected in order to primarily affect the Microsoft’s sales force & in this regard, CNBC reported that around 10% of the company’s total sales staff will be let go (up to 3,000 jobs). It has been reporting that the Verge understands the cuts which are in the thousands but Microsoft is refusing in order to confirm the exact number. Rumors had suggested that these cuts would take place & it is traditional for the Microsoft to reorganize its businesses at this time of the year, just ahead of its new financial year.

A Microsoft spokesperson in a statement to CNBC says that:

“Microsoft is implementing changes to better serve our customers & partners”

Microsoft has been fighting against the rivals like Amazon & Google & this fighting is directly leading the potential increase in the development of the cloud. This is the main & major focus of the company. Recently, server business & the Microsoft’s cloud have been greatly fueling the revenue. The server products & the cloud services are on the way to revenue about 15%. It has been seen that in the recent quarter, Azure revenue has been increased to about 93 percent. Thus, Microsoft will have to try most & has to play its level best.  Microsoft’s last major reorganization took place a year ago after former Chief Operating Officer Kevin Turner left the company.

These points are highly pointed in the regard of the Microsoft’s increasing the cloud growth & those are as follows:

  • Microsoft has announced a major reorganization on Thursday that includes thousands of layoffs of the employees.
  • Microsoft’s layoffs of the employees will mostly affect sales & also thousands of jobs will be cut in this regard.
  • Most of the changes will then affect an employee’s outside of the U.S.
  • Microsoft has almost 71, 000 employees in the United States
  • Microsoft has almost 121, 000 employees throughout the globe

Additionally, Microsoft has been increasingly selling versions of its various enterprise software like its Office work suite & Dynamics customer relationship management software in a cloud subscription model, similar to companies like Salesforce (CRM).

Microsoft said:

“During its latest quarterly earnings report that its cloud business rose 11% year-over-year to $6.76 billion.”

Microsoft Will Announce Layoff Thousands of Employees In order to Fuel the Cloud Growth - overview

Summary: Microsoft has been considered as the American technology company which is a multinational company for the services related to the computers & related operating systems. This has been laying off thousands of employees in order to increase the growth of the Cloud development.



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