Thousands of layoffs are planned to hit Microsofts global workforce this week, part of a shakeup of the companys sales organization, according to a report Sunday in TechCrunch.

As part of the layoffs, Microsoft plans to merge parts of its enterprise customer business with its small-and-medium-enterprise business unit, according to TechCrunch,citing a source with knowledge of the downsizing.

Weve reached out to Microsoft for comment, and well update this post as we learn more.

On Friday, Bloomberg reported that Microsoft was planning a reorganization of its sales group in order to focus more intently on its growing cloud computing business. Bloomberg did not report on the number of potential layoffs, but noted that the changes were likely to be announced this week.

The changes in the sales operation appear to be putting even more weight behind Microsofts Azure business, which is growing rapidly. Microsofts commercial cloud run rate hit $15.2 billion during the second quarter, up from $14 billion in the previous quarter. Meanwhile, revenue in the companys intelligent cloud group grew by 93 percent to $6.8 billion in the second quarter.

It is unclear whether the layoffs will be accompanied by new cloud-focused job openings.

Microsofts fiscal year ended on June 30, so the timing of the cutbacks could be tied to the companys move into a new fiscal year, which started on July 1.

Last July, Microsoft cut 2,850 people from its smartphone and sales teams.

As of March 31, Microsoft employed 121,567 worldwide, including 45,535 in Washington state.

Originally posted here:

Microsoft reportedly set to lay off thousands as part of massive sales reorganization - GeekWire