Microsoft to cut up to 4,000 jobs, mostly outside US

7 Jul 201728 Shares

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Computer giant Microsoft confirms a raft of job cuts.

Microsoft has confirmed that it is cutting up to 4,000 sales and marketing roles worldwide, or almost 10pc of its total salesforce.

The news comes just days after it emerged that a memo was shared amongst staff, appearing to warn them that sales employees will have to work in new ways as the emphasis shifts from traditional selling to the cloud.

‘Like all companies, we evaluate our business on a regular basis. This can result in increased investment in some places and, from time to time, redeployment in others’
– MICROSOFT

Microsoft employs around 50,000 people in sales worldwide out of a total workforce of 112,000 people.

It is understood that the layoffs will occur in some groups that support sales, such as IT, finance, and corporate and external affairs.

A reported 1,000 of the jobs will be cut in the US, with the remainder overseas.

Cloud shift: Impact to be minimal in Ireland, say sources

The New York Times has reported that affected employees have already been informed and some have been offered different positions within the software company.

Microsoft, which is due to report its quarterly earnings on 20 July, has not said specifically how many roles will be cut, due to labour law negotiations in Europe.

The news comes as a big surprise, considering that Microsoft announced 600 inside-sales jobs at its Irish operations earlier this year.

At the time of writing, sources close to the company said the impact of the cuts is likely to be “minimal” in Ireland.

Microsoft employs 1,800 people full-time and 700 additional people on contract in Ireland, and, since it arrived here in 1985, its total investment in the country has amounted to in excess of €1bn.

In 2015, Microsoft revealed it was constructing a new €134m campus at South County Business Park in Leopardstown.

Last year, Siliconrepublic.com reported that Microsoft received planning permission from South Dublin County Council to build four huge data centres, which could involve further investment of €900m, and create 140 permanent jobs and 1,800 construction jobs.

After reaching out to Microsoft, a spokesperson for the company told Siliconrepublic.com:  “Microsoft is implementing changes to better serve our customers and partners. Like all companies, we evaluate our business on a regular basis. This can result in increased investment in some places and, from time to time, redeployment in others.”

Editor John Kennedy is an award-winning technology journalist.

editorial@siliconrepublic.com