Microsoft Layoffs Signal Shift To Cloud Services Focus

  • July 7, 2017 at 5:46 PM EDT
  • By Adam Blair
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Microsoft will lay off approximately 3,000 workers, mostly in its sales division, as the tech giant focuses more intensely on its Azure cloud business. Approximately 75% of the job cuts will be outside the U.S., and the total amounts to less than 10% of the company’s sales force, according to CNBC. Multiple sources reported that the cuts are a reorganization rather than a cost-cutting move.

Azure, which competes with Amazon Web Services and Google to provide cloud computing services, has experienced remarkable sales growth. Results from the company’s Q3, reported in April 2017, showed a 93% sales increase for this division. Additionally, Fortune reported that Microsoft has been selling its more traditional products, such as Office software and the Microsoft Dynamics CRM solutions, via a cloud subscription model.

Microsoft began informing employees about the layoffs on July 6. “Today, we are taking steps to notify some employees that their jobs are under consideration or that their positions will be eliminated,” wrote a company spokesperson in a statement. “Like all companies, we evaluate our business on a regular basis. This can result in increased investment in some places and, from time-to-time, re-deployment in others.”




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