In a major organizational reshuffle, Microsoft is slated to lay off thousands of employees in sales and marketing departments worldwide. Most of the employees to be affected are those reporting to Chief Marketing Officer Chris Capossela and Executive VPs Judson Althoff and Jean-Philippe Courtois. These executives are said to have written to their respective teams about the impending layoffs. News of a reorganization was first reported by the Puget Sound Business Journal. Also Read - Your Window PC can now run Android appsAlso Read - Windows 11 launched: Top 5 features of Windows 11 which makes it better than Windows 10
It is believed that the layoffs are a result of the change in sales and marketing leadership at Microsoft. Executive VPs Althoff and Courtois took charge last year after the exit of long-time COO Kevin Turner who would look after sales/marketing as well as commercial business. After he quit, the new heads have shifted focus to Microsoft’s cloud-based service Azure and intends to make that a key part of the sales strategy going forward. Incidentally, Microsoft has added more than 1,000 salespeople with specialties in cloud solutions in the last one year. ALSO READ: Microsoft s hybrid-cloud solution Azure Stack TP3 now available in India Also Read - Windows 11 borrows Xbox Series X/S-like fast loading speeds for PC gamers
Last September, the new sales heads had been vocal about their criticism of past approaches. Althoff believed that Microsoft stumbled by trying to sell its web-based tools as if they were just another piece of out-of-the-box software, according to Seattle Times. It was a flawed strategy to try to sell Azure like, Do you want fries with that? he was quoted as saying, referring to Microsoft’s on-demand processing power and data storage. But it isn t our approach today, he added.
July which marks the end of a fiscal year for Microsoft is usually when all salesfroce reductions are announced. In 2016, the company had cut 900 sales jobs among its 2,850 layoffs across divisions. The worst hit was its smartphone business where over 1,800 employees were laid off in May. And before that in 2015, it had laid off 7,800 people and wrote down $7.6 billion of its Nokia acquisition one of Microsoft’s lowest points in recent times. ALSO READ: Windows 10 Mobile gets a new update as Microsoft tries to keep the platform up and running
The current restructuring which will be announced tomorrow (July 5) will also include the merger of its enterprise customer unit and one or more of its SME-focused divisions. The company declined to comment on the layoffs to the foreign press.