Microsoft plans layoffs in sales force shake-up

Posted July 05, 2017

Reportedly, the changes will be announced this coming week.

This picture taken on on May 25, 2016 shows Microsoft's Finnish headquarters in Espoo. The restructuring is likely to "include an organisational merger that involves its enterprise customer unit and one or more of its SME-focused divisions", it said. Although it is still a priority for the company to sell the software on its desktop computers and laptops, Microsoft's new target focuses on getting consumers sign up to the service itself. The company has been focusing on its cloud services for some time now, shifting them beyond just value-add for Windows users to being more broadly relevant to a platform-agnostic audience.

Microsoft will retrench thousands of employees around the world as it reorganises its sales force, TechCrunch reported. ZDNet reports that Microsoft has a new Enterprise Operating Unit for its sales department which will be focused on its new businesses and new "customer success units". Cloud revenue per employee is lower than the company would like, some people close to the matter said. Sales teams are likely to be most significantly impacted, insiders say, as Microsoft focuses its efforts more on selling cloud software. In April 2017, Microsoft pledged to achieve $20bn (£16bn) in yearly cloud revenue by 2020.

"This news surrounding Microsoft's major reorganization of its sales team, to expand its cloud based offering should come as no surprise".

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Reorganizations at the software giant are something of an annual ritual, often announced at the close of the company's fiscal year, which ends Friday.

This is not the first time that Microsoft has restructured its operation - moves made necessary by the rapidly changing nature of technology.

Microsoft CEO Satya Nadella carved up Turner's responsibilities after his departure. And given the rate at which Microsoft's cloud apps and Azure, its cloud service, are now accounting for a sizable portion of its sales - at 34% among enterprises, up from 20% past year - Nadella wants to mash the accelerator.