Microsoft 'may shed thousands of jobs in cloud refocus'

Another July reorganisation is rumoured for Microsoft, this time to strengthen cloud sales

Microsoft is set to cut thousands of jobs globally, reports suggest, restructuring to focus on sales of its cloud products.

One source told TechCrunch that the alleged layoffs were centred on restructuring that will see an enterprise unit merge with an SMB-focused division. A separate report from Bloomberg suggested Microsoft was reorganising to put more attention on its cloud software, citing sources familiar with the matter.

Advertisement - Article continues below

Microsoft is expected to make the announcement later this week. The mid-year restructure is becoming common at Microsoft, with job cuts and reorganisations hitting in 2015 and 2016. In 2013, the company restructured its major divisions and executive lineup.

This year's reorganisation looks set to strengthen Microsoft's focus on its increasingly lucrative cloud division potentially a wise move following its latest results announced at the end of April, with its hardware business struggling as cloud surged. The company's annual cloud revenues topped $15 billion, with its Intelligent Cloud division climbing 11% and sales for Azure up 93%.

Microsoft executives have previously suggested the company was shifting how it sells cloud products. In an interview with the Seattle Times last year, executive vice president of the Worldwide Commercial Business organisation, Judson Althoff, said Microsoft had mistakenly been selling its Azure cloud services the same as standard software.

Advertisement
Advertisement - Article continues below

"It was a flawed strategy to try to sell Azure like, Do you want fries with that?' " Althoff told the newspaper. "But it isn't our approach today." He said Azure was now becoming an "anchor tenant" for corporate and government sales.

Microsoft hasn't yet replied to IT Pro's request for comment.

Featured Resources

Top 5 challenges of migrating applications to the cloud

Explore how VMware Cloud on AWS helps to address common cloud migration challenges

Download now

3 reasons why now is the time to rethink your network

Changing requirements call for new solutions

Download now

All-flash buyer’s guide

Tips for evaluating Solid-State Arrays

Download now

Enabling enterprise machine and deep learning with intelligent storage

The power of AI can only be realised through efficient and performant delivery of data

Download now
Advertisement

Recommended

Visit/business-strategy/chief-executive-officer-ceo/354935/western-digital-hires-ciscos-david-goeckeler
chief executive officer (CEO)

Western Digital hires Cisco’s David Goeckeler as its new CEO

6 Mar 2020
Visit/strategy/28047/what-is-digital-transformation
Business strategy

What is digital transformation?

6 Mar 2020
Visit/business-operations/sales-crm/354863/salesforce-co-chief-keith-block-steps-down
sales & CRM

Salesforce co-chief Keith Block steps down

26 Feb 2020
Visit/strategy/29101/six-ways-boards-can-step-up-support-for-cyber-security
Business strategy

Six ways boards can step up support for cyber security

27 Jan 2020

Most Popular

Visit/infrastructure/server-storage/355118/hpe-warns-of-critical-bug-that-destroys-ssds-after-40000-hours
Server & storage

HPE warns of 'critical' bug that destroys SSDs after 40,000 hours

26 Mar 2020
Visit/software/video-conferencing/355138/zoom-beaming-ios-user-data-to-facebook-for-targeted-ads
video conferencing

Zoom beams iOS user data to Facebook for targeted ads

27 Mar 2020
Visit/software/355113/companies-offering-free-software-to-fight-covid-19
Software

These are the companies offering free software during the coronavirus crisis

25 Mar 2020
Visit/mobile/mobile-phones/355088/apple-lifts-iphone-purchase-restrictions
Mobile Phones

Apple lifts iPhone purchase restrictions

23 Mar 2020