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Microsoft confirms layoff reports; could cut up to 3,000 jobs

File photo. Photograph: (Reuters)

WION Web Team Bengaluru 7 July 2017 Jul 07, 2017, 07.32 AM (IST)

Microsoft plans to cut "thousands" of jobs, with a majority of them outside the United States. As per previous reports, Microsoft would undergo a reorganisation that would impact its sales and marketing teams as the company doubles down on its fast-growing cloud business.

Confirming those reports, Microsoft in an email response to an AFP inquiry, said, "We are taking steps to notify some employees that their jobs are under consideration or that their positions will be eliminated."

Earlier, CNBC television said the company would be cutting some 3,000 positions, mostly from its non-US sales staff. "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 company said in a statement.

The layoffs come as the US software colossus refocuses its sales force on making Microsoft a pivotal part of businesses relying on cloud computing, according to media reports.

The Redmond, Washington-based company employed about 120,000 people globally as of March 31, with sales and marketing teams accounting for about 19 per cent of the workforce, according to the company's website.

Microsoft has notified some employees about the reduction. However, in some geographies, the company plans to notify employees that their jobs are under consideration.

Since taking over as chief executive in 2014, Satya Nadella has sharpened the company's focus on its cloud computing unit to counter a prolonged slowdown in the PC market.

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