Posted by Admin | Tech News

Microsoft is currently laying off thousands of workers in a shake-up geared toward selling subscriptions.

The majority of the people losing their jobs work in earnings and are situated outside the U.S.. The Redmond, Washington, company confirmed that it started Thursday sending the layoff notices, but declined to provide specifics except that thousands of sales jobs will be cut.

“Like all businesses, we evaluate our company on a regular basis,” Microsoft said in a statement. “This may result in increased investment in certain areas and, from time-to-time, re-deployment in others.”

Microsoft Corp. employs about 121,500 individuals globally. Nearly 71,600 of these operate in the U.S., with the rest elsewhere.

The job cuts are part of Microsoft’s shift away from the traditional approach of licensing programs and its Office software for a fee connected to one computer. The company is currently focusing on selling recurring subscriptions for applications accessible on multiple devices, a fast growing trend called “cloud computing.”

That portion of Microsoft’s operations has been playing an significant role, particularly among government and corporate clients, since Satya Nadella substituted Steve Ballmer as the CEO of the company in 2014.

Microsoft’s “commercial cloud” section is on a pace to generate roughly $15-billion in yearly earnings. More than 26 million users subscribe to Microsoft’s Office 365 service which includes its Word, Excel and other programs. That amount has doubled in the last two decades.

Revenue from licensing of Microsoft’s Windows operating system has been rising by 5 percent or less in the few quarters.

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