Microsoft Corp. (NASDAQ: MSFT), one of the leading titans of the tech and software industry, has announced today that it plans to cut thousands of jobs, up to 3,000. They have cited this move as part of a reorganization process that will see the software giant focus its efforts on the cloud. The company employs more than 120,000 people globally, with sales and marketing teams accounting for about 19 percent of the workforce. It is reported that the cut will mainly be affecting the sales department. The 3,000 jobs cut accounts for around 10% of Microsoft jobs and it is said that the vast majority of the cuts will mainly take place outside of the U.S., with 75% job cut overseas.
Microsoft was going to specifically focus on how it sells its cloud-services product, Azure, as they have noticed a significant boost in sales growth of Azure, at 93% last quarter and a 15% overall boost in sales of server products and cloud sales. Microsoft also said during its latest quarterly earnings report that its cloud business rose 11% year-over-year to $6.76 billion.
This move seems traditional for Microsoft to reorganize its businesses at this time of the year, just ahead of its new financial year. They have said that they hope to implement these changes to better serve their customers and partners. Today, Microsoft is trading at $68.63, down 0.65%.