Microsoft layoffs confirmation comes from the company headquarters. Microsoft layoffs will result in 3,000 people losing their jobs. The company wants to reorganize its sales business. The Microsoft layoffs, as per the enterprise, only represent less than 10% of its workforce.
Microsoft Layoffs and Intimation to Employees
The company stated that it is already in the process of letting employees know about their future with Microsoft. Microsoft gave notifications to the employees that their roles were under consideration and may be eliminated in the future.
A spokesperson for Microsoft told a media outlet that the company keeps evaluating its position in the market. Microsoft, as per the spokesman, had to invest a lot of money in different places including costs related to re-deployment.
A lot of the roles to be replaced work abroad but Microsoft did not specifically mention the regions. Microsoft declined to give exact numbers since some countries in the EU require companies to negotiate with their employees.
Re-Alignment of Business Priorities and Microsoft Layoffs
The Microsoft layoffs may not affect some employees which the company may readjust in its other departments. The realignment of its sales division with 50,000 employees with marketing arm has resulted in redundancy of resources.
Reason for Microsoft Layoffs
An internal memo by Microsoft argues the company wants to grab a $4.5 trillion market opportunity. Therefore, Microsoft wants to merge its sales and marketing divisions. This alignment, as per the company, let Microsoft align the right resources to acquire the right type of customer base. The company seriously considers artificial intelligence and data analysis to help become a digital business enterprise.
Microsoft employees were around 121,500 which increased during the last few years. The last Microsoft layoffs made 18,000 people redundant. The restricting took place right after Satya Nadella becomes the CEO of the company. At that time, Satya Nadella communicated his dismay over the acquisition of Nokia.
Big IT companies like Google, Amazon, and others are moving towards delivering SaaS solutions. The changing in approach from downloading and installing software to cloud-based software service is changing the way users interact with tech businesses.
Satya Nadella is already moving the company’s business in the SaaS direction, and Microsoft does not consider personal computing business as its major area of focus.
The internal memo also let the employees know about the renewed company focus in the various industries. The company, as per the memo, is increasingly going to focus on health, education, retail, financial services, manufacturing, and government.
One reason that many IT experts believe has resulted in Microsoft layoffs is the lack of technically knowledgeable sales staff. The new IT related sales jobs need a lot of technical knowledge. The changing marketplace puts pressure on the companies to have sales people with the desired level of technical skills and software knowledge.
