Microsoft to Cut Thousands of Sales Jobs
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"Microsoft is implementing changes to better serve our customers and partners," Microsoft told PCMag. "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."
CNBC reports that cuts will affect "less than 10 percent of the company's total sales force," or up to 3,000 jobs. About 75 percent of the layoffs will take place overseas, meaning the company is planning to cut up to around 1,000 U.S.-based employees.
CNBC says the layoffs are part of a "major reorganization." This isn't necessarily a cost-cutting measure: Microsoft is reportedly looking to change the way it sells its cloud-service product Azure, sales of which grew 93 percent last quarter.
Going forward, Microsoft plans to "use employees who are more knowledgeable about specific verticals so they can sell bigger packages," the report notes.
Microsoft currently has around 121,000 employees worldwide, including 71,594 in the U.S., according to the company's website. Around 18.5 percent of Microsoft employees are in sales roles.
The latest round of cuts comes after Microsoft last July cut 2,850 employees from its smartphone hardware business and global sales division. Before that, Microsoft in May 2016 laid off 1,850 as it scaled down its smartphone hardware business.