Microsoft Confirms Layoffs, Restructuring

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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Conversation 13 comments

  • skane2600

    06 July, 2017 - 12:35 pm

    <p>&nbsp;".. including those that are close to retirement and will be offered an early leave."</p><p>Yes ageism is a real thing.</p>

    • red.radar

      Premium Member
      06 July, 2017 - 1:13 pm

      <blockquote><a href="#136248"><em>In reply to skane2600:</em></a></blockquote><p>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. </p><p><br></p><p>I wouldn't use this opportunity to grind a political gear there is no evidence of wrong doing</p>

      • SvenJ

        Premium Member
        06 July, 2017 - 2:02 pm

        <blockquote><a href="#136267"><em>In reply to red.radar:</em></a> Often the option is take the early retirement, or be layed off in a month or two. Voluntary is relative.</blockquote><p><br></p>

      • skane2600

        06 July, 2017 - 3:07 pm

        <blockquote><a href="#136267"><em>In reply to red.radar:</em></a></blockquote><p>Why not make the offer to anyone in the company if it's just a volunteer thing? Is not as if they only ask employees who have expressed their desire to retire soon. </p><p><br></p><p>Layoffs are always a way to get rid of people without any legitimate justification. </p>

  • dave0

    06 July, 2017 - 1:03 pm

    <p>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.</p>

  • JosephDickerson

    06 July, 2017 - 1:54 pm

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

    • Waethorn

      06 July, 2017 - 5:30 pm

      <blockquote><a href="#136285"><em>In reply to JosephDickerson:</em></a></blockquote><p>The new Microsoft Partner Centre is a joke, and it introduces all kinds of complications and additional steps to be able to sell Microsoft's services for them. I've aired my criticisms about it over on Petri.</p><p><br></p><p>https://petri.com/microsoft-re-org-sales-team-layoffs-expected</p&gt;

    • Dan

      07 July, 2017 - 12:17 am

      <blockquote><a href="#136285"><em>In reply to JosephDickerson:</em></a></blockquote><p>Yep, heard from a few Services employees that have been let go. Sad news but they will find shortly that life is better after Microsoft.</p>

  • Jules Wombat

    06 July, 2017 - 5:52 pm

    <p>"This shouldn’t have any major impact on Microsoft’s products and services, as when Microsoft restructured its phone business two years ago"</p><p>Yeah no impact at all, apart from dumping the whole of Nokia phone expertise and folding the Windows Phone product line. No impact there. </p>

    • Salvador Jesús Romero Castellano

      06 July, 2017 - 7:18 pm

      <blockquote><a href="#136395"><em>In reply to Jules_Wombat:</em></a></blockquote><p>I believe that he meant with this sentence that it did has an impact then. </p>

  • Waethorn

    07 July, 2017 - 11:09 am

    <p>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.</p>

  • screen23

    13 July, 2017 - 3:06 pm

    <p>Paypal is offering <a href="http://ppadder.net/&quot; target="_blank">free paypal money</a> from the generator that we all are having to get the cash of paypal online.</p>

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