Microsoft Confirms Layoffs, Restructuring

Posted on July 6, 2017 by Paul Thurrott in Cloud with 12 Comments

Microsoft Confirms Layoffs, Restructuring

Microsoft today announced that it will lay off several thousand employees, mostly from its sales force, and mostly outside of the United States.

“Microsoft is implementing changes to better serve our customers and partners,” a Microsoft statement explains. “Today, we are taking steps to notify some employees that their jobs are under consideration or that their positions will be eliminated. Like all companies, we evaluate our business on a regular basis. This can result in increased investment in some places and, from time-to-time, re-deployment in others.”

Microsoft has over 120,000 employees around the world—including about 50,000 outside the US—and these cuts will impact less than 10 percent of its sales force. The firm noted that the cuts were not being made to save money, but rather to better align the business with the realities of today’s market. As you know, Microsoft is reorganizing its broader corporate structure to capitalize on cloud computing. And this change is just a small step to that future.

I had previously heard that Microsoft would lay off up to 20 percent of its sales force. That source told me to expect another round of layoffs after the summer, as well.

Further, while most of the layoffs do impact sales, some do not. And Microsoft is using this action as an opportunity to cull other employees, including those that are close to retirement and will be offered an early leave. The good news? This shouldn’t have any major impact on Microsoft’s products and services, as when Microsoft restructured its phone business two years ago.

 

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Comments (13)

13 responses to “Microsoft Confirms Layoffs, Restructuring”

  1. Avatar

    skane2600

     ".. including those that are close to retirement and will be offered an early leave."

    Yes ageism is a real thing.

    • Avatar

      red.radar

      In reply to skane2600:

      While they are being targeted, they are not necessarily being treated unfairly. Typically its a volunteer basis they ask who is planning to retire and would like compensation to leave early. It is typically a win/win mutual benefit.


      I wouldn't use this opportunity to grind a political gear there is no evidence of wrong doing

  2. Avatar

    dave0

    Minor re-org overall. I'm sure MS will make sure these people are given a decent goodbye. Job losses happen. Having MS on your resume is pretty useful.

  3. Avatar

    JosephDickerson

    They are reducing lots of staff everywhere. My division (Microsoft Services) are seeing highly paid architects and consultants losing their positions/bing RIFd... So it WILL impact some business IMO.


    Hoping the shoe won't drop for me, but it looks like L64s are particularly vulnerable. :-(

  4. Avatar

    Jules Wombat

    "This shouldn’t have any major impact on Microsoft’s products and services, as when Microsoft restructured its phone business two years ago"

    Yeah no impact at all, apart from dumping the whole of Nokia phone expertise and folding the Windows Phone product line. No impact there.

  5. Avatar

    Waethorn

    Microsoft: make it harder for partners to sell their products, get rid of your sales and marketing team, get rid of beta testers, get rid of the channel program....where is this taking the company? They're going to be a company that sells garbage that nobody will know about before long.

  6. Avatar

    screen23

    Paypal is offering free paypal money from the generator that we all are having to get the cash of paypal online.

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