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Microsoft has confirmed a cloud-related company restructure is underway, which will see thousands of positions “eliminated” from the business.
In a statement to Computer Weekly, the company said it has already begun notifying affected staff about the changes, which it claims will position it better to serve its growing cloud customer base.
“Today, we are taking steps to notify some employees that their jobs are under consideration or that their positions will be eliminated,” a Microsoft spokesperson said. “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, redeployment in others.”
According to a CNBC report, 75% of the expected job losses will occur outside of the US, with the company’s sales function bearing the brunt of the cuts, as Microsoft moves to capitalise on growing demand for its cloud services.
Indeed, Microsoft’s most recent set of financial results, detailing its third-quarter performance, shined a light on the significant contribution the firm’s cloud activities now make to its bottom line.
The results showed Microsoft’s Commercial Cloud division, which oversees the activities of its Azure public cloud platform, as well as its line of business and business productivity applications, is now a $15.2bn run rate business.
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- US analyst house Pacific Crest claims Microsoft is on course to surpass AWS in revenue terms in 2017.
The overall division posted a 52% year-on-year increase in revenue for the third quarter, while the revenue accrued by Azure alone was up by 93% on the previous year.
The analyst community has been quick to praise Microsoft of late for the enterprise momentum its cloud endeavours seem to be enjoying, with 451 Research recently remarking on the growing threat the company poses to cloud behemoth Amazon Web Services (AWS).
Elsewhere, the company is also being tipped to overtake AWS as the cloud revenue market leader later this year.