Microsoft (NASDAQ: MSFT) confirmed restructuring plans to change the way it conducts its sales efforts. The moves were expected to impact thousands at the company known as “Mr. Softee”, as it works to reorganize its sales team. Various media outlets put the final figures at anywhere between 3,000 and 5,000, with one network saying around three-quarters of the cuts will occur outside the U.S.
For its part, Microsoft is refusing to cite specific numbers just yet, only confirming that it began the process of informing employees of job losses today.
Reports from last week suggested this was going to happen and that Microsoft was going to specifically focus on how it sells its cloud-services product, Azure.
Microsoft's cloud business has been booming over recent quarters — Microsoft noted Azure sales growth of 93% last quarter. While Amazon (NASDAQ: AMZN) has become a bigger competitor in the space, Microsoft's restructuring is to pivot to software as a service, platform as a service and infrastructure.
MSFT said its goal isn't to cut costs and reiterates the move is instead a change in how Microsoft handles sales. It said its plan is to use employees who are more knowledgeable about specific verticals so they can sell bigger packages.
Microsoft has 71,000 employees in the U.S. and 121,000 employees around the globe, suggesting that these cuts are relatively small compared to the size of its entire workforce.
Microsoft shares demurred 50 cents to $68.58, in late Thursday trading.
