Waterloo Region Record

Microsoft begins latest round of layoffs amid reorganiza­tion

- Hayley Tsukayama Washington Post

Microsoft has started cutting thousands of positions, mostly in its sales department, days after announcing it would shift its sales strategy to focus more on cloud services than on its traditiona­l server and desktop businesses.

“Microsoft is implementi­ng changes to better serve our customers and partners. Today, we are taking steps to notify some employees that their jobs are under considerat­ion or that their positions will be eliminated,” the company said in a statement to The Washington Post.

“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.”

The job cuts were expected after Microsoft’s announceme­nt last week.

A majority of the cuts will be made to positions outside of the United States, the company said. Microsoft said that thousands of jobs would be eliminated, but it declined to confirm reports that place that figure at 3,000 positions.

There will also be a few cuts at the firm’s headquarte­rs in Redmond, Wash., the Seattle Times reported.

Cloud services have been the main focus for Microsoft chief executive Satya Nadella since he took over the company in 2014 with a mandate to modernize the firm for a mobile-first, cloud-first world.

Nadella, who came up through the firm’s cloud division, has narrowed Microsoft’s focus and doggedly trimmed the company’s workforce.

In 2014, he announced he planned to cut up to 18,000 jobs.

Many cuts came from the firm’s smartphone division, which Nadella sold off in 2016, two years after his predecesso­r purchased them for $7.2 billion.

Last July, Microsoft said it would cut 2,850 positions.

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