Earlier this month, there were rumors that Microsoft would begin layoffs as it shifted its focus towards the cloud. Well, today those were rumors were confirmed.
Microsoft did not give much in the way of specifics regarding the job cuts, but we do know that the majority of them appear to be related to sales. It is estimated that Microsoft may cut as many as 3,000 jobs. Seventy-five percent of these jobs would be outside the United States.
Which Jobs Will Be Cut?
We don't know exactly which jobs will be cut, but current estimates put the number at as many as 3,000, which represents about 10 percent of Microsoft's sales force. It appears that the main reason this shift is occurring is simply due to the changing nature of how Microsoft sales of its cloud-based products. The company has also said that there may be increased hiring in some divisions to make up for the losses in sales.
Microsoft's Plans For The Future
While speaking to CNBC, a Microsoft spokesperson stated that the company was focused on restructuring in order to better serve its customers.
"Microsoft is implementing changes to better serve our customers and partners," a Microsoft spokesperson told CNBC. "Today, we are taking steps to notify some employees that their jobs are under consideration or that their positions will be eliminated. 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."
While we don't know which positions will be cut, we do know that Microsoft is heavily investing in the cloud for the future of the company and its Windows platform. Azure, Microsoft's main cloud service, saw a 93 percent increase in sales last year. The company's main competitor in the area of cloud computing and storage is Amazon Web Service. Overall, Microsoft's cloud division has seen strong growth and the company's renewed focus on this division makes sense.
Surface Book And Pro
Aside from the growth of its cloud division, Microsoft's hardware division has also grown in recent years. The Surface line of products has proven that Microsoft can create products that are just as powerful and stylish as Apple. Of course, when it comes to the Surface Book and Windows 10 S, Apple may not be Microsoft's target. Instead, it is likely to be Google's popular Chromebook line which has seen a lot of success with students and educators.
