Microsoft to Lay Off 11,000 Employees as it Shifts Focus to Cloud-Based Services

Microsoft is reportedly planning to lay off around 5% of its workforce, which equates to around 11,000 employees.

According to sources familiar with the matter, the layoffs are expected to primarily affect the company’s sales division, as Microsoft looks to shift its focus towards its cloud-based services.

The layoffs are expected to take place over the next several months, with the majority of the affected employees being notified of their termination within the next six months. This move is part of a broader effort by Microsoft to restructure its sales division and focus more on its cloud-based services, such as Azure and Office 365.

The layoffs come as Microsoft continues to see strong growth in its cloud-based services, with Azure revenue growing by 50% in the most recent quarter. Additionally, Microsoft’s Office 365 subscription service also saw strong growth, with the number of subscribers increasing by 35% in the same quarter.

Despite the layoffs, Microsoft is still expected to continue hiring in other areas, such as its cloud-based services and artificial intelligence divisions.

Microsoft’s decision to lay off around 5% of its workforce is a sign of the company’s ongoing efforts to adapt to the changing technology landscape and focus on the areas where it sees the most growth potential. While it’s unfortunate for the employees affected, it’s a necessary move for the company to continue its growth trajectory.