Impact on Indian jobs remains unclear — Microsoft layoffs

Posted July 05, 2017

Microsoft will undergo a reorganization that will impact its sales and marketing teams, company executives told employees on Monday. There may be other smaller personnel changes in other parts of the company too, one of other people said.

The Washington-based tech giant has announced layoffs of thousands of jobs in the past few years.

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Microsoft Corp. reorganized its sales and marketing operations in a bid to woo more customers in areas like artificial intelligence and the cloud by providing sales staff with greater technical and industry-specific expertise. The company said in January that it planned to cut 700 jobs, part of the previously announced restructuring. Sales teams are likely to be most significantly impacted, insiders say, as Microsoft focuses its efforts more on selling cloud software.

Microsoft is likely to layoff thousands of its employees in plans to reorganise the company's sales group to boost cloud computing services. "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. Althoff works with partners to spread the adoption of Microsoft technology, while Courtois leads global sales, marketing, and services for 122 subsidiaries worldwide. The report also quotes IT sector veteran Mohandas Pai saying in December a year ago that almost 20 crore middle-class youth would have no jobs or less jobs by 2025 due to increasing automation and improvement in technology.

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The opportunity is huge- research firm Gartner estimates that cloud infrastructure as a service will exceed traditional data center outsourcing spend in India this year.

"Microsoft is implementing changes to better serve our customers and partners", the company said in a statement on the rumors. In April 2017, Microsoft pledged to achieve $20bn (£16bn) in yearly cloud revenue by 2020.

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The purported layoffs set for this week would come just as Microsoft ends one fiscal year and enters another. Instead, it's another step towards the new business model Microsoft has been pursuing under CEO Satya Nadella.