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Microsoft confirms sales force rejig amid lay-off rumours

microsoft-logo [Representational image] While reports forecast changes would result in thousands of job cuts, Microsoft only confirmed that changes were on the way | File

Changes on the way, confirms Microsoft; firm eyeing enormous opportunity in 'digital transformations'

Microsoft will undergo a reorganisation that will impact its sales and marketing teams, company executives told employees on Monday. The re-shuffling will impact those under Microsoft Chief Marketing Officer Chris Capossela, Executive Vice Presidents Judson Althoff and Jean-Philippe Courtois, all of whom sent messages to their teams describing how the structure redesign will work. 

However, contrary to media reports, the memos did not mention layoffs. 

News reports had earlier hinted at likely lay-offs at the tech giant as it refocuses its sales force on making the software colossus a pivotal part of businesses relying on cloud computing.

While many reports forecast the changes would result in thousands of job cuts, Microsoft only confirmed that changes were on the way.

"Microsoft is implementing changes to better serve our customers and partners," said a Microsoft spokesperson.

The reorganization comes about a year after Courtois and Althoff were promoted to lead the company's global sales and marketing operations and its worldwide commercial business following the departure of former Chief Operating Officer Kevin Turner.

Since then, Althoff has said it is his plan to make Microsoft's Azure cloud-computing service a focal point of the company's sales strategy. 

Tech news website GeekWire published what it indicated were excerpts from the Microsoft memo, which referred to an enormous business opportunity helping its customers with "digital transformations".

Chief Executive Satya Nadella has sought to reduce the tech giant's focus on software, shifting to cloud computing and business services.

"From large multinationals to small and medium businesses to non-profits all over the world, organisations are using Microsoft's cloud platforms to power their digital transformation," Nadella said when the company reported its earnings for the first three months of this year.

Microsoft reported revenue gains in cloud and business service operations, which offset a drop in "personal computing," which includes the Windows operating system that once made up its core business.

Microsoft has announced thousands of jobs cuts in recent years, the most severe being 18,000 positions eliminated in 2014 related from its acquisition of Nokia and failed efforts in the smartphone market.

The technology giant cut 7,800 jobs in 2015, and 4,700 last year.

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