Microsoft (NASDAQ:MSFT) will cut 3,000 jobs mostly from the sales force as the company restructures to focus more on the cloud, according to CNBC. According to reports, a majority of the job cuts will occur outside the U.S. Microsoft employed 71,000 people in the U.S. and a total of 121,000 employees as of March 2017.
Microsoft has notified some employees about the reductions, the source said.
A spokesperson for Microsoft tells CNBC that like all companies, they evaluate their business on a regular basis.
These layoffs are the result of a corporate reorganization at Microsoft announced earlier this week, which sees the company's global sales force refocus its efforts on selling cloud computing services.
With rivals like Amazon and Google finding success with their respective cloud services, it's no surprise to hear that Microsoft wants to invest more in its Azure business.
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While Business Insider does not have verified access to the company managed chat app Blind, chatter about conference room bookings and schedules has surfaced from the more than 25,000 user base over at Microsoft. Microsoft officials, including CMO Chris Capossela, executive vice presidents Judson Althoff and Jean-Philippe Courtois, publicly discussed the reorganization, also without mention of layoffs.
The news came as its cloud businesses continue to perform well. It allows companies to do everything from hosting websites and email to streaming favorite videos and delivering on-demand software.
As you know, Microsoft is reorganizing its broader corporate structure to capitalize on cloud computing. Microsoft Azure is a growing collection of could services that allow developers and IT professionals build, deploy and manage applications. Around 18.5 percent of Microsoft employees are in sales roles. Most of the jobs cut at the time were related to Nokia.
Microsoft completed its $26 billion acquisition of the professional social network LinkedIn late previous year as part of its new strategy.