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Microsoft confirms layoffs, report says 3000 losing jobs


Microsoft has over 120,000 employees around the world-including about 50,000 outside the US-and these cuts will impact less than 10 percent of its sales force. Like all companies, we evaluate our business on a regular basis.

These layoffs are the result of a corporate reorganization at Microsoft announced earlier this week, which sees the company's global sales force refocus its efforts on selling cloud computing services. Cloud sales, by comparison, have almost doubled. The bulk of the cuts, specifically 75 percent, are to be made outside of the U.S.

"Microsoft is implementing changes to better serve our customers and partners", Microsoft told CNBC.

Going forward, Microsoft plans to "use employees who are more knowledgeable about specific verticals so they can sell bigger packages", the report notes.

CNBC says the layoffs are part of a "major reorganization". And businesses require specialized cloud software, tailored for their industry.


The firm said its "intelligent cloud" products generated $1.7bn (£1.3bn) in revenue for the nine months to the end of March, driven by doubling revenue from its cloud computing platform Azure.

'You look at Microsoft, and you realize that certain things that worked in the past are not gong to be relevant in the future, ' Chowdhry said.

Fortt said that the 3,000 number was just one of many "thousands numbers" that are floating around speculatively and so not out of keeping with expectations.

The move also reflects the declining enterprise interest in desktops and the rise of cloud services offered out of Microsoft data centers globally.

Mid-year re-structurings have become the standard at Microsoft ever since former CEO Steve Ballmer announced a company-wide restructuring in 2013 - shortly before he departed from the company and current chief executive Satya Nadella took over in 2014. A year ago alone, more than 7500 people were let go by Microsoft.

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