The layoffs are expected to primarily impact Microsoft’s sales force, and CNBC reports that around 10 percent of the company’s total sales staff will be let go (up to 3,000 jobs). The Verge understands the cuts are in the thousands, but Microsoft is refusing to confirm the exact number. Rumors had suggested these cuts would take place, and it’s traditional for Microsoft to reorganize its businesses at this time of the year, just ahead of its new financial year.
"Microsoft is implementing changes to better serve our customers and partners," says a Microsoft spokesperson in a statement to CNBC. "Today, we are taking steps to notify some employees that their jobs are under consideration or that their positions will be eliminated. Like all companies, we evaluate our business on a regular basis. This can result in increased investment in some places and, from time-to-time, re-deployment in others."
Microsoft’s new focus on the cloud comes as the company sees growth potential as it fights against rivals like Amazon and Google. Microsoft’s cloud and server businesses have been fueling revenue recently, with server products and cloud services revenue up 15 percent and Azure revenue itself growing by 93 percent in the recent quarter. Microsoft's last major reorganization took place a year ago after former Chief Operating Officer Kevin Turner left the company.