Microsoft confirms sales and marketing rejig, but stays quiet on job cut rumours

Reports claim Microsoft will cut "thousands" of jobs as it aligns sales and marketing teams to cloud-first strategy

Microsoft has reportedly confirmed that it will be reorganising its sales and marketing teams but has not addressed claims that "thousands" of jobs could be axed.

Numerous reports over the weekend claimed that Microsoft was preparing to slash a number of jobs - before further leaks stated that Microsoft executives had confirmed a reorganisation in a memo to employees, but did not mention redundancies.

A Microsoft representative then confirmed a reshuffle to Reuters, saying: "Microsoft is implementing changes to better serve our customers and partners."

News of potential redundancies was first reported by Seattle-based Pugal Sound Business Journal, before publications including Bloomberg and TechCrunch claimed to have confirmed the reports with sources.

Pugal Sound Business Journal reported that Microsoft will make the announcement on 5 July, claiming the rationale is to align the company's sales and marketing teams better to its "cloud-first mantra".

Bloomberg reported that sources said the reorganisation will directly result in job cuts, with local marketing teams set to be impacted as well as those in global capacities.

It noted that the cuts will specifically impact Microsoft's Worldwide Commercial Business which overseas enterprise, public sector, small and midmarket, services, developers and partners.

Microsoft's fiscal year closed on Friday last week (30 June), with its results scheduled to be announced on 20 July.