Microsoft slashes 3,000 jobs as company shifts focus to cloud services

Microsoft has revealed plans to cut up to 3,000 jobs as part of a reorganization effort to focus more on the company’s various cloud efforts.

The layoffs will primarily impact Microsoft’s sales force, with around 10 percent of the company’s total sales staff being let go. Rumours emerged earlier this week suggesting Microsoft had plans to make these cuts, but the company has now confirmed that they’re taking place.

“Microsoft is implementing changes to better serve our customers and partners,” said Microsoft spokesperson in a statement to 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.”

For the last few financial quarters Microsoft’s various cloud efforts have been the source of growing revenue, along with its Surface devices business. In total, server products and cloud services revenue are up 14 percent, with Azure revenue growing by 93 percent in the recent quarter.

It’s unclear if Microsoft’s Canadian operating will be effected by the layoff, but we’ve reached out to Microsoft Canada for clarification.

Via: The Verge