Microsoft Set To Lay Off 3,000 Employees to Focus on The Cloud


From – Microsoft announced Thursday that it would lay off 3,000 employees as it puts more resources toward the cloud, which Chief Executive Satya Nadella has predicted will rapidly gain unprecedented reach.

The company said that it plans to lay off thousands of its 121,000 employees worldwide, with most coming from sales outside the U.S., CNBC reported. Microsoft also said the headcount reduction comes as it shifts to boosting sales of its cloud-based product, Azure, a key growth driver. Nadella has highlighted Microsoft’s vision for cloud growth in speeches, press releases and interviews in recent years.

Although Datasmith never likes to hear that employees will be out of a job, this layoff is just another sign of technology’s future. Microsoft’s sales for the Surface and phone offerings have dropped. Instead of trying to compete in this market, they are shifting focus to their cloud based offering: Azure. Microsoft saw growth in businesses utilizing Azure across the board. From large international organizations to small to medium sized businesses, adaptation of Azure increased.

Part of this shift in focus will include enhancing Intelligent Cloud abilities. Chief Executive Satya Nadella presented his vision for a “massive shift” to cloud solutions that will include artificial intelligence, autonomous cars and digitized physical space. “We’re moving from what is today’s mobile-first, cloud-first world to a new world that is going to be made up of an intelligent cloud and an intelligent edge,” Nadella said.

One of the cloud-based scenarios provided at Microsoft’s Developer Conference was an Azure digitization of a construction site that aimed to track equipment and people to heighten workplace safety. Using the system, an employer can upload a new worker using people recognition and help her find a jackhammer, someone trained to use it and who the last person was to use it. The company could also see whether the jackhammer was in a safe position and create a set of policies related to safety.

As you can see, Microsoft is shifting it’s focus on what’s here to stay: the cloud. The Cloud has already pervaded every aspect of technology today. Now that many organizations and users have adopted the cloud, technology providers are looking to what’s next. The Cloud is designed to transform the way we do business and go about everyday life. If you’re not using the cloud, or cloud based services, contact Datasmith today to see how we can make your life easier.