Microsoft could soon fire thousands of staff

Microsoft is planning layoffs as it refocuses its sales force on making the software colossus a pivotal part of businesses relying on cloud computing, according to media reports.

While many reports forecast the changes would result in thousands of job cuts, Microsoft only confirmed to AFP that changes were on the way.

“Microsoft is implementing changes to better serve our customers and partners,” a Microsoft spokesperson said. Tech news website GeekWire published what it indicated were excerpts from the Microsoft memo, which referred to an enormous business opportunity helping its customers with “digital transformations.”

Chief executive Satya Nadella has sought to reduce the tech giant’s focus on software, shifting to cloud computing and business services.

“From large multinationals to small and medium businesses to non-profits all over the world, organizations are using Microsoft’s cloud platforms to power their digital transformation,” Nadella said when the company reported its earnings for the first three months of this year.

Microsoft reported revenue gains in cloud and business service operations, which offset a drop in “personal computing,” which includes the Windows operating system that once made up its core business.

Microsoft said revenue from its “Intelligent Cloud” rose 11% from a year earlier to US $6.8 billion.

Microsoft said its Office commercial products and cloud services revenue increased seven percent.

Office consumer products and cloud services revenue rose 15%, as the number of Office 365 consumer subscribers increased to 26.2 million.