Microsoft is cutting about 10% of its global sales force, the company announced on Thursday, confirming earlier reports of a mass layoff. According to reports, a majority of the job cuts will occur outside the U.S. Microsoft employed 71,000 people in the U.S. and a total of 121,000 employees as of March 2017.
'Like all companies, we evaluate our business on a regular basis.
In fact, some of that report's highlights show just how profitable the cloud service businesses have become, with Azure almost doubling its revenue growth from the previous quarter. It will lay off 3,000 workers, around 75 percent of which will be from sales positions outside the U.S.
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"Microsoft is implementing changes to better serve our customers and partners", Microsoft told CNBC.
As of this year, Microsoft has over 70 thousand employees in the United States alone. Some of Microsoft's efforts in the reorganization of its sales teams will result in several positions being shifted, refocused or combined.
Chief executive Satya Nadella has sought to reduce the tech giant's focus on software, shifting to cloud computing and business services. It allows companies to do everything from hosting websites and email to streaming favorite videos and delivering on-demand software.
The reorganization was announced internally on Monday. Otherwise, the note provided to TechCrunch is a fairly lukewarm confirmation of layoffs that will most likely number in the thousands as previously reported. It's understood that the vast majority of the job losses will be in sales, and staff outside the USA will be hardest hit. Microsoft also stated that the company's goal isn't to cut costs but instead bring a change in how Microsoft handles sales.