Microsoft’s plans are now to make the software colossus a main part of businesses relying on cloud computing and refocus on its sales, which will further lead to layoffs. Job cuts in thousands would result with this change, forecast many media reports. Changes are on the way confirmed Microsoft on 3rd July 2017. A spokesman from Microsoft states the changes are being implemented to serve partners and customers in a much better way. GeekWire, a site offering Tech news has published excerpts from the memo from Microsoft which has reference to many opportunities in business in a way help customers with digital transformations.
Satya Nadella, Chief Executive, Microsoft has plans to make a shift to business services and cloud computing thus reducing focus of the tech giant, on software. To power digital transformation, non-profit organizations, medium, small and small businesses to large multinationals, all are using cloud platforms of Microsoft, states Nadella. This year when earnings for the first quarter were reported, Microsoft was that it have gained more revenue in business service and cloud operations, offsetting a drop in ‘personal computing’. This also includes the Windows Operating System which had made up its core business, once. The revenue of Microsoft’s ‘Intelligent Cloud’ rose to 6.8 billion dollars this year from the earlier 11 percent last year.
In 2014, around 18000 positions were eliminated, after thousands of job cuts were announced by Microsoft. In 2014 the job cuts were most severe related from failed efforts in the smartphone market and acquisition of Nokia, states Washington based, Redmond. In 2015, around 7800 job cuts and in 2016, approximately 4700 job cuts have been done by the technology giant.