After about a week of speculations, Microsoft has confirmed that there will be major reorganisation at the company, including thousands of layoffs, reports CNBC. The layoffs will be primarily is sales and amount to less than 10% of the company’s total sales force, and about 75% of these will be jobs outside of the US. The report mentions that Microsoft hasn’t attached a specific number to the layoffs.
As of March 31, 2017, Microsoft had 121,567 employees worldwide, of which 71,594 were in the US. About 18.5% of the employees worldwide were engaged in sales or about 22,490. Given that the company has confirmed that less than 10% of the sales force will be laid off, it looks like there will about 2000 job cuts worldwide.
The remaining members of Microsoft’s sales teams are expected to focus on its cloud business Azure, which had registered a 93% increase in service revenue for the three months ended March 31, 2017. Azure’s growth pushed up the revenue of the servers & cloud services business, which is under the Intelligent Cloud segment, by 15% for the three months period. Overall the Intelligent Cloud segment, which includes the servers & cloud services business and the enterprise services business, reported an 11% increase in revenue for the three months period to $6.76 billion, as compared to $6.09 billion for the same period last year.
Last month, Microsoft and Box Inc. partnered to offer Box cloud content management with Azure to enterprise customers. This is expected to available later this year, though no specific date was mentioned by the companies. During the Microsoft Build developer conference, in May this year, the company had also announced that Azure now supports Linux Bash Shell programming. The addition of Bash will allow developers to use GNU’s editors including emacs, vim, etc., as well as various Linux-only libraries straight from Windows.