Amid a broader
reorganization of its sales structure, Microsoft on Thursday confirmed plans to cut thousands of jobs around the world.
“Microsoft is
implementing changes to better serve our customers and partners,” a company spokesman said.
While Microsoft has yet to announce an official figure,
the company is reportedly ready to ax up to 10% of its global workforce -- or around 5,000 employees.
The bloodletting --
which has been rumored for days -- is part of an effort to restructure the software giant’s sales organization.
Per its restructuring, Microsoft is
expected to concentrate more on its Azure cloud service and small-to-medium-size business clients.
The shift is a no-brainer, considering the recent
success the company has had selling its cloud computing services.
During its fiscal third quarter, Microsoft’s commercial cloud
annualized revenue run rate soared to more than $15.2 billion, which helped boost quarterly profits by nearly30%.
Microsoft is in the process of
notifying employees that their jobs are “under consideration,” or that their positions will be eliminated, the spokesman said.
News of the
layoffs comes days after the surfacing of an internal memo, which alluded to major adjustments to Microsoft’s consumer and commercial businesses.
If executed property, Microsoft
executives predicted in the memo that a restructuring could translate into a $4.5 trillion market opportunity.