Microsoft is preparing to lay off thousands of employees, according to report

Reuters

Reportedly, the changes will be announced this coming week. Bloomberg reported that employees will not be offered new jobs within Microsoft.

This picture taken on on May 25, 2016 shows Microsoft's Finnish headquarters in Espoo.

Microsoft is readying for job losses as it prepares to shake up its business, reports warn, with layoffs likely as the software giant doubles-down on the cloud.

Apparently, the rejig could include an organizational merger that involves its enterprise customer unit and one or more of its SME-focused divisions.

Microsoft was contacted for comment, but declined.

The Redmond, Wash., company's sales group has long focused on selling packaged software and services to corporate buyers, which hasn't always necessitated specific technical expertise.

On 2 July, TechCrunch reported that Microsoft was "poised" to layoff thousands of employees in a move to "reorganise its salesforce".

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Over the weekend, the Puget Sound Business Journal and The Seattle Times confirmed massive layoffs as Microsoft focuses on cloud services within its sales teams. "The SMC team will be divided into a handful of teams, namely Global Demand Center, which is created to deliver direct revenue, sales leads and" consumption at scale"; Inside Sales; Marketing & Operations; Field Sales for SMC customers; and One Commercial Partner.

The restructuring looks to be an outcome of a change in company's leadership a year ago. Inside sources said "smaller personnel changes" may impact other sections of the company.

"Microsoft is implementing changes to better serve our customers and partners", a Microsoft spokeswoman told Reuters.

The reports associated with the cut in the workforce were linked with an increased emphasis on cloud service within Microsoft's sales teams worldwide.

The reorganization will shift the sales team's focus to the software maker's cloud business which has been thriving in the recent years.

Microsoft CEO Satya Nadella carved up Turner's responsibilities after his departure. This move by Microsoft is most likely an attempt to reduce costs and improve revenue per employee. The stock is almost 10% so far this year.

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