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.

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.

"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

Shining light on new 'cool' cloud technologies and their drawbacks

IONOS Cloud Up! Summit, Cloud Technology Session with Russell Barley

Watch now

Build mobile and web apps faster

Three proven tips to accelerate modern app development

Free download

Reduce the carbon footprint of IT operations up to 88%

A carbon reduction opportunity

Free Download

Comparing serverless and server-based technologies

Determining the total cost of ownership

Free download

Recommended

What does a CISO do?
Careers & training

What does a CISO do?

29 Oct 2021
CDO job description: What does a CDO do?
Business strategy

CDO job description: What does a CDO do?

22 Oct 2021
Five best practices for resilient, reliable, remote IT services
Whitepaper

Five best practices for resilient, reliable, remote IT services

5 Oct 2021
The cyber security skills your business needs
Security

The cyber security skills your business needs

19 Aug 2021

Most Popular

What should you really be asking about your remote access software?
Sponsored

What should you really be asking about your remote access software?

17 Nov 2021
How to move Microsoft's Windows 11 from a hard drive to an SSD
Microsoft Windows

How to move Microsoft's Windows 11 from a hard drive to an SSD

24 Nov 2021
Sabbath hackers are targeting US schools and hospitals
ransomware

Sabbath hackers are targeting US schools and hospitals

29 Nov 2021