Microsoft’s Focus On Cloud Computing To Likely Result In Lay-offs
Given the increasing focus on Azure cloud sales vs. Boxed software which seems to be in a secular decline, Microsoft is expected to carry out a major reorganization of its sales staff resulting in layoffs as per media reports. While the company has declined to comment on this so far, according to sources a formal announcement could be made as early as this week.
Last week, the Puget Sound Business Journal, Bloomberg and The Seattle Times all reported the possibility of a cloud-focused re-organisation which would lay off “Thousands” and bring about meaningful changes to the sales force in years to come. A source, aware of the matter, told TechCrunch that the restructuring would encompass an organizational merger, involving its enterprise customer unit and one or more of its SME-focused divisions. There seems to be no information around which geographies would be impacted.
Last year saw the departure of Kevin Turner who oversaw operations related to sales, marketing, operations and corporate technology. Microsoft gave the charge of sales to Judson Althoff while Jean-Philippe Courtois was given the reins of the marketing division. Althoff has been critical of the replication of the sell-it-and-forget-it strategy adopted by his predecessors as used for physical software to sell Azure.
Similar to the previous year, the company seems to have adopted the strategy to lay off people close to its fiscal year end which falls in July. Last year, the company said it would give pink slips to about 2,850 people which included about 900 employees from the sales group.
Image Source: Reuters