This article first appeared in The Edge Financial Daily on July 5, 2017 - July 11, 2017

SAN FRANCISCO: Microsoft is planning layoffs as it refocuses its sales force on making the software colossus a pivotal part of businesses relying on cloud computing, according to media reports.

While many reports forecast the changes would result in thousands of job cuts, Microsoft on Monday only confirmed to AFP that changes were on the way.

“Microsoft is implementing changes to better serve our customers and partners,” a Microsoft spokesman told AFP.

Tech news website GeekWire published what it indicated were excerpts from the Microsoft memo, which referred to an enormous business opportunity helping its customers with “digital transformations.”

Chief executive officer Satya Nadella has sought to reduce the tech giant’s focus on software, shifting to cloud computing and business services.

“From large multinationals to small and medium businesses to non-profits all over the world, organisations are using Microsoft’s cloud platforms to power their digital transformation,” Nadella said when the company reported its earnings for the first three months of this year.

Microsoft reported revenue gains in cloud and business service operations, which offset a drop in “personal computing,” which includes the Windows operating system that once made up its core business.

Microsoft said revenue from its “Intelligent Cloud” rose 11% from a year earlier to US$6.8 billion.

Microsoft said its Office commercial products and cloud services revenue increased 7%.

Office consumer products and cloud services revenue rose 15%, as the number of Office 365 consumer subscribers increased to 26.2 million.

Microsoft is to release its earnings for the recently ended quarter on July 20.

Microsoft’s cloud platform, called Azure, faces competition from technology powerhouses Amazon and Google. — AFP