Electronic enthusiasts early eight: Microsoft's new round of layoffs announced.
On July 6, US Eastern Time, a number of foreign media reported that Microsoft announced that the company will make major adjustments, one of which is to lay off employees on a global scale. According to the latest foreign media news, the number of layoffs may involve 3,000 to 4,000 people, and Microsoft China has notified some employees about the matter.
According to a statement issued by Microsoft, the job cuts will be mainly in the marketing department, and less than 10% of employees will be laid off, of which 75% will come from branches outside the US.
As early as July 3, there were reports that Microsoft plans to cut "thousands" of employees worldwide, but Microsoft has refused to comment on the number of layoffs.
It was not until July 6, US time that an anonymous person disclosed the number of 3,000 to 4,000 people to the New York Times. The New York Times analyzed that Microsoft did not disclose the exact number of layoffs because in some countries (especially European countries), it is necessary to negotiate according to labor laws.
Microsoft China employees were not spared. It is understood that Microsoft China today has also received notice that employees have been "re-evaluated or reduced."
Microsoft China issued a statement to 澎湃News (): "Microsoft is implementing a series of changes aimed at providing better service to our customers and partners. Today, we have notified some employees about their positions. Being reassessed or reduced. As with all companies, we regularly evaluate our business. The results of the assessment may be that the company will further increase its investment in certain areas. Of course, it may also be adjusted in certain areas. ."
Microsoft has about 50,000 employees in the marketing department worldwide. When Microsoft announced last week that the company will make major adjustments, CNBC also reported that the number of layoffs could reach up to 3,000.
Last week, Microsoft executive vice president Judson Althoff explained the logic behind the realignment in an internal company email. He wrote that in the next few years, Microsoft will face "a huge market opportunity of 4.5 trillion US dollars", and the changes in the marketing department are to "put our resources to the right customers at the right time."
Althoff also highlighted that key opportunities include expanding its cloud services in data analytics and artificial intelligence, while helping companies across all industries to digitize through the use of Microsoft tools.
The last big layoff of Microsoft was in 2014 when the company cut 18,000 jobs. But the number of employees at Microsoft's global headquarters is as high as 121,500, and the number has risen in the past few years.
The big layoffs in 2014 took place shortly after the current CEO, Satya Nadella, took over the former CEO Steven Ballmer. When Nadella came to power, he thought that Microsoft's $7.2 billion acquisition of Nokia's mobile phone business was a failure, so he began selling it little by little until the business unit was finally shut down. As a result, most of the employees abolished at the time came from departments related to Nokia's business.
By the time 2017, Nadella once again discovered that Microsoft had reached a moment when it had to make a change. Its strong competitors include Amazon, Google (microblogging), IBM, Oracle and other technology companies, and these companies are rapidly developing cloud services, no longer rely on traditional software services as the center.
Under Nadella's leadership, Microsoft's focus has shifted from traditional computer software services to cloud software delivery. However, the demand for cloud services in the market is also subdivided, especially in the field of big data analysis and artificial intelligence, each of which requires tailor-made cloud services. This is where Microsoft wants to plow.
This was also mentioned in Althoff’s email last week. He believes that Microsoft will focus on "six priority areas" in the future - manufacturing, financial services, retail, health, education and government.
Microsoft spokesperson Frank Shaw said that "in the future, sales and marketing work will require more technical and specific domain knowledge than before." Realignment and layoffs are designed to match the company's talent skills to the changing market.
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