Microsoft Corp. is planning to reorganize its sales force as part of a transition towards a stronger focus on cloud technologies, which may lead to workforce reductions.
Microsoft's Reorganization Plans
Microsoft is looking to reorganize its sales teams, with reports suggesting potential layoffs affecting thousands of employees. These cuts are expected to be announced in early July 2024, shortly after the company's fiscal year ends in June.
Sales Force Layoffs
Sources indicate that the sales department will be among those hit hardest, but it won’t be the only division affected by the layoffs. Microsoft has yet to comment on the matter. The move reflects the company's intent to streamline its operations amidst significant investments in artificial intelligence and cloud infrastructure.
Industry Trends in Technology
This planned reorganization follows the layoffs of approximately 6,000 employees in May 2024, primarily affecting engineering and product roles. In April, Microsoft announced a shift in its sales strategy to rely more on third-party companies for selling software products to small and midsize businesses. Microsoft currently has a global workforce of about 228,000 people, with 45,000 working in sales and marketing.
Microsoft is actively reassessing its structure to align with long-term growth objectives. The anticipated layoffs signal broader trends in the tech industry where companies are seeking to optimize costs amidst increasing investments in technology.
