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Microsoft confirms layoffs, to cut up to 3000 jobs outside US

The company is reportedly implementing changes to better serve its customers and partners.
India TV Tech Desk New Delhi July 07, 2017 10:05 IST
India TV Tech Desk

Tech giant Microsoft has confirmed that it is undertaking a major reorganisation that will likely see the company cutting about 3,000 jobs from its global workforce, CNBC reported.

Quoting a Microsoft spokesperson, the CNBC report said that that the company is implementing changes to better serve its customers and partners.

"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," the spokesperson said.

CNBC added that the job cuts amount to less than 10 per cent of the company's total sales force, and about 75 per cent of them will be outside the US.

The report added that Microsoft was going to specifically focus on how it sells its cloud-services product, Azure.

Microsoft's cloud business has been booming over recent quarters and the company Microsoft noted Azure sales growth of 93 percent last quarter. 

"While Amazon has become a bigger competitor in the space, Microsoft's restructuring is to pivot to software as a service, platform as a service and infrastructure," the report said.

Microsoft said its plan is to use employees who are more knowledgeable about specific verticals so they can sell bigger packages.

Microsoft has 71,000 employees in the US and 121,000 employees around the globe, suggesting that these cuts are relatively small compared to the size of its entire workforce, CNBC said.

(With PTI inputs)