Microsoft to Cut 3,000 Jobs, Mostly From Sales Team

The software giant is trying to boost its Azure cloud services to compete with Amazon and Google.

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In a move that had been expected, Microsoft has announced that it will be cutting up to 3,000 jobs, mostly from its sales team. The software giant is looking closely at how it sells its Azure cloud-based services in an effort to better compete with Google and Amazon.

"Microsoft is implementing changes to better serve our customers and partners," a Microsoft spokesperson told CNBC. "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."

The company was quick to point out that the move is not a cost-saving measure, but more of a re-evaluation of how Microsoft handles sales. Azure sales grew 93 percent last quarter, the company said, and the company aims to market Azure as service and infrastructure. 

To put that in perspective, those numbers are about 10% of its total sales force. About 2,200 of the job cuts will be positions outside the United States, according to CNBC. Overall, the company employs 71,000 people in the U.S. and around 121,000 worldwide.

This news comes as the Bureau of Labor & Statistics reported today that 222,000 jobs were added to the U.S. economy in June.

Contributing Editor

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From The Chatty

  • reply
    July 7, 2017 1:15 PM

    John Keefer posted a new article, Microsoft to Cut 3,000 Jobs, Mostly From Sales Team

    • reply
      July 7, 2017 1:46 PM

      This could be a result of the new direction re-alignment of shacknews, but since I am an IT PROFESSIONAL, this is the first time I've forwarded a shacknews story to someone (my brother, who is in cloud services sales)

      FWIW, humorously this is probably interesting to some game devs who host their servers on azure. I wonder if any game developers have lost their sales POC from this

    • reply
      July 7, 2017 3:55 PM

      Too many of them lowering rates to Ed Chambers.

    • reply
      July 7, 2017 5:09 PM

      I survived! Yah!

      • reply
        July 7, 2017 5:16 PM

        How many additional roles did you receive with no wage increase?

      • reply
        July 7, 2017 5:27 PM

        azure, office probably bulletproof right now

        • reply
          July 7, 2017 5:28 PM

          Yeah if you are technical