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Update (06/07/17): Today, Microsoft confirmed that it would be going through another round of restructuring, meaning thousands of job cuts will be made. In a statement sent out today, a Microsoft spokesperson said that the company is “implementing changes to better serve” its customers and partners. While the company did not disclose how many jobs will be cut as part of this statement, it is estimated to be between 3000 and 5000.
We first heard about this latest round of job cuts at the start of the week, when sources familiar with plans gave the press a heads up. According to CNBC, around 3000 jobs will be cut, meanwhile Business Insider claims it will be closer to 5000. It is still thought that this change with mainly impact sales teams.
Original Story (03/07/17): Back in 2015, following Microsoft's acquisition of Nokia, the company cut just over 10,000 jobs, many of which were from the company's hardware teams. Now this week, it looks like Microsoft is set for another significant round of layoffs, with “thousands” of jobs on the line at Microsoft's global campuses.
Speaking with TechCrunch this week, one source with knowledge of Microsoft's plans claimed that “thousands” of jobs will be on the line later this week, as Microsoft moves to reorganise its workforce. This move was foreshadowed late last week, when a Bloomberg report came out stating that Microsoft will ‘reorganise to focus on Cloud'.
The restructuring is apparently going to be announced later this week and will impact Microsoft's global sales marketing group. The plan seems to be to refocus the marketing team to push customers to sign up for cloud-hosted services, rather than buy software outright to run locally. An example of this would be the shift from Microsoft Office to Office 365.
We should hear something official from Microsoft later this week.
KitGuru Says: Under Satya Nadella's leadership, we have seen Microsoft shift towards providing ongoing services, rather than singular products. This latest restructure seems to double down on that, with a bigger push for cloud-based services. Hopefully those affected by these job cuts land on their feet okay, losing a job is never a nice experience.
Sucks for all of those people but I’m sorry you won’t ever get me to switch to cloud based software and subscriptions I like to buy once and not pay a yearly subscription. I tell every customer I have that asks about this to buy the software they want to use and if they really need to work on it from any where online they can use the provided free cloud based storage services like Onedrive or Googles storage. I also tell them if they feel unsafe we the free online storage they can always use a USB stick and take their work with them. With MS and others focusing on cloud app’s and services it won’t be long before all software becomes subscription based and maybe it don’t sound like much now but it will all start adding up when you have to pay for several subscription each year.
I see MS also taking Windows into subscription mode soon the writing was on the wall with Windows 10 free and their big push to get everyone on it. The Windows 10 S should be a big eye opener for what their plans are. I am surprised the EU has not started complaining yet and try to start something because of Windows 10 S as it just screams closed walled garden and forcing software dev’s into that walled garden because 10S supports only app’s from the MS store. Sure you can unlock it but only for the first year then you pay to keep that.
When I sell pre built systems and laptop I will make sure non of them have this Win 10 S crap installed. I don’t want my paying customers to have to go through that crap. It won’t stop all of this from happening since it seems subscriptions is the new buzz word and the new cool but I can do everything in my power to slow it down at least in my neck of the woods. I will never pay for a Windows subscription I don’t mind buying windows or Office but subbing and pay to play is a no go I would either go Linux and Libra office or just hack the sub’s take your pick. Hell most of us cut the cords with cable and sat TV because of the cost.