Microsoft is an American Multinational Technology Company that manufactures, develops, and sell computer software and services. Significant changes to their marketing department will cost 4,000 jobs.
The company announced that most of the positions are outside the United States. The exact number of cuts is unknown. Some people may receive other employment offers within the business.
In 2014, Microsoft cut about 18,000 jobs. This came shortly after Chief Executive Satya Nadella determined the $7.2 billion acquisition of Nokia’s mobile phone business failure. Microsoft has to compete with other software companies like Amazon and Google. Shares were down 0.7 percent at $68.63, as of Thursday, July 6, 2017.
Last week, Microsoft had a sweeping realignment of its sales and marketing arms, which employs about 50,000 people worldwide. Overall, Microsoft Corp. there were about 120,000 people employed globally, 19 percent of which are sales and marketing teams as of March 31.
Executive Vice President Judson Althoff wrote in an email that they anticipate “an enormous $4.5 trillion market of opportunity for Microsoft in the coming years.” Key areas of opportunity include expanding cloud offerings in data analysis and artificial intelligence. He also wrote: “The sales and marketing changes were intended to enable us to align the right resources for the right customer at the right time.”
Since taking charge of the business sales team late last year, Althoff has been openly critical of past sale approaches staff. according to one of his memos. He noted a planned move toward customizing approaches to Azure Stack sales. These plans would undergo a reorganization, which would impact sales and marketing teams as the company doubles down on its fast-growing cloud business.
Shipments will begin in September. The Azure Stack offers a solution that does not require all data to be stored in the cloud. It appeals to those with limited access due to geography concerns. The three companies already partnered with Microsoft and Azure Stack are Dell EMC, Lenovo, and Hewlett Enterprise.
Written by Nicole Thompson
Edited by Cathy Milne
The New York Times: Microsoft to cut up to 4,000 sales and marketing jobs
AOL Finance: Microsoft Plans to Cut Thousands of Jobs
Techcrunch: Microsoft confirms layoffs reports, reorganization expected to impact thousands
Seeking Alpha: Microsoft announces hybrid Azures Solution
Featured Image and Top Courtesy of Mike Mozart’s Flickr Page – Creative Commons License