The tech giant Microsoft, recently, confirmed the plan for mass dismissal. The decision is part of a series of internal restructurings that have been promoted since Satya Nadella took over the reins of the company.
Microsoft To Fire 3,000 Employees Around The World
Microsoft confirmed this Wednesday that rumors have surfaced over the last few days about a plan for mass dismissal. The decision is part of a series of internal restructurings that have been promoted since Satya Nadella took over the reins of the company. About 3,000 jobs will have to be eliminated.
While the number of layoffs is significant, the tech giant Microsoft is not only aiming to reduce costs with the measure. The company explains that the decision is the effect of a change in the way sales will be made: from now on, there will be more focus on marketing services in the clouds, highlighting the Azure ecosystem.
Changing directions makes sense. Windows licensing revenue has dropped due to a slowdown in the PC market. The tech giant Microsoft has, on the other hand, increasingly been getting revenue from Office 365 subscriptions and business services, a category that encompasses Azure – Platform increased by 93% in the last quarter compared to the same period last year.
The restructuring plan will make the tech giant Microsoft more aggressive on two fronts: large corporate customers and, at the other extreme, small and medium-sized businesses. The problem is that sales teams do not need as many people to operate in these segments. The consequence we see now: layoffs.
The possible 3,000 slots to be cut – however, the tech giant Microsoft has not yet confirmed the total – therefore it will mainly affect the commercial teams. The number of shutdowns will be greater in teams operating outside the United States. The total should account for approximately 10% of the global sales team.
The tech giant Microsoft notes, however, that its number of employees remains quite significant: Currently, the company employs 121,000 people, with 71,000 of them serving in the United States.
So, what do you think about this unsudden massive layoff? Simply share your views and thoughts in the comment section below.