Microsoft Terminating Up To 5,000 Employees Due To Cloud Computing Focus

In a new report, Microsoft has just announced that it is going to be conducting mass termination among its sales force. The company would be shedding about 10 percent of the workers who are stationed in retail, the majority of the affected being overseas employees. This is due to the massive effort by the company to focus on its cloud computing business, which is fast becoming a major part of its enterprise.

The reorganization effort by Microsoft is intended to shift its focus on more profitable ventures, CNBC reports. Right now, this would be its cloud computing efforts, which as it turns out does not require too many sales personnel. This really did come as a surprise to analysts since reports of the mass layoffs have been circulating since last week.

In any case, the terminations are not indicative of troubles within Microsoft and instead is just an expected part of running a software business. These changes are also a reflection of how the company intends to serve its customers in the future, as a spokesperson told CNBC.

"Microsoft is implementing changes to better serve our customers and partners,” the spokesperson said. "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."

While the layoffs will mostly be centered on the sales department, which includes cashiers and store personnel, some of the finance and legal departments related to these sectors will be affected as well, Business Insider notes. In total, these could number somewhere around 5,000. What’s more, the announcement also coincides with Microsoft’s fiscal year end. This occurred back on June 30 and the event is typically accompanied by restructuring efforts.