Microsoft Expected To Cut An Estimated 5000 Employees

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Around 3,000 jobs will be cut and the sales force restructured to focus on selling its cloud-based business product, Microsoft Azure.

In this round of layoffs, up to 3,000 employees will be impacted by the reorg; most of the cuts will come from outside the USA and as expected, impact the Sales organization. "This can result in increased investment in some places and, from time-to-time, re-deployment in others", a Microsoft spokesperson told CNBC.

Microsoft said revenue from its "Intelligent Cloud" rose 11 percent from a year earlier to $6.8 billion.

Going forward, Microsoft plans to "use employees who are more knowledgeable about specific verticals so they can sell bigger packages", the report notes.

Microsoft is competing with Amazon, Google and other major technology companies, like IBM and Oracle, in the fast-growing business of delivering software as a cloud service instead of as traditional software loaded onto computers. The duo is running the global sales and marketing group after taking over from Kevin Turner in 2016.

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The company has been beefing up its cloud software and services as it tries to unseat the sector's top provider Amazon Web Services (AWS).

It is understood any impact of potential job cuts on Ireland would be very minimal.

The layoffs were expected to begin today, as part of a reorganization that finds the remaining sales team redirecting focus to its cloud service Azure. It allows companies to do everything from hosting websites and email to streaming favorite videos and delivering on-demand software. Last July, Microsoft said it would cut 2850 positions. The following year brought another 7,800 layoffs, while the company announced another round of up to 1,850 job cuts last year.

In June, the company consolidated some of its cloud, artificial intelligence, and data platform business units, ZDNet reported. A year ago alone, more than 7500 people were let go by Microsoft.