Microsoft Set To Lay Off Thousands
Microsoft who are witnessing slow sales of their Surface tablets and who refuse, to give out sales numbers for their declining Xbox gaming consoles, is set to lay off thousands of employees, at this stage it’s not known how many will be sacked in Australia.
The Company who is also being challenged in the cloud application market by Google who is trying to strip share away from the more expensive Office 365, they have also failed “dismally” in the smartphone market say analysts.
According to sources the US software Company who has been questioned about their marketing methods relating to Windows 10 is set to start merging divisions, including their enterprise and SME divisions who work closely with service providers.
At the weekend the Puget Sound Business Journal, Bloomberg and The Seattle Times all reported ‘major’ layoffs related to a move to increase the emphasis on cloud services within Microsoft’s sales teams worldwide.
Bloomberg said the redundancies would be “some of the most significant in the sales force in years.”
According to Tech Crunch the reorganization looks to be a result of a change of leadership this past year.
Executives Judson Althoff and Jean-Philippe Courtois took charge of Microsoft’s sales and marketing divisions following the exit of long-serving COO Kevin Turner last year.
Althoff, for one, has been public in his criticism of previous sales approaches, and he is keen to make Azure a central part of the focus.
The end of Microsoft’s fiscal year typically falls in July, and it recent years it has been a time when the firm has announced headcount reductions.
Last year, Microsoft announced that it would cut 2,850 jobs — including at least 900 from its sales group, according to The Seattle Times — having two months earlier said it would let go of 1,850 staff related to its smartphone business. In July 2015, it made 7,800 job cuts and wrote down $7.6 billion of its Nokia acquisition.