Microsoft Plans to Cut Up to 3K Jobs in Sales Staff Overhaul

Image Credit Stephen Brashear  Getty Images  Microsoft

According to a CNBC report, the job cuts amount to less that 10 per cent of the company's total sales force.

Microsoft said it had notified some employees that their positions will be "eliminated".

A spokesperson for Microsoft tells CNBC that like all companies, they evaluate their business on a regular basis.

Reuters reported on Monday that Microsoft would undergo a reorganization that would impact its sales and marketing teams as the company doubles down on its fast-growing cloud business. Intel began a similar transition previous year, eliminating 15,000 jobs to reduce the company's dependency on the fading PC market.

Microsoft's goal isn't to cut costs, and the move is instead a change to how Microsoft does sales. According to Microsoft, up to three thousand jobs will be cut.

Microsoft is going to be expanding on its strategy at next week's Inspire partners summit in Washington, DC, and more layoffs are rumored to be coming in the Autumn.

As expected, Microsoft announced layoffs today that will affect thousands of its employees. It will lay off 3,000 workers, around 75 percent of which will be from sales positions outside the U.S.

The reshuffling comes a year after Courtois and Althoff were promoted to lead Microsoft's global sales and marketing efforts following the exit of former chief operating officer Kevin Turner.

Microsoft's fiscal year ends on June 30, and it traditionally announces reorganizations and layoffs at the start of July.

This downsizing will also include an "organisational merger" that reportedly involves Microsoft's enterprise customer unit and one or more of its SME-focused divisions. Microsoft Azure's revenue grew 93 percent in the first quarter of 2017, compared to AWS' 43 percent growth.

The company has been beefing up its cloud software and services as it tries to unseat the sector's top provider Amazon Web Services (AWS).

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