SAN FRANCISCOÂ — Microsoft plans to shed thousands of jobs at a significant reboot to focus on its fast-growing business that is cloud-computing.
“Microsoft is implementing modifications to better serve our clients and partners,” Microsoft said in a statement to USA TODAY.Â Â “Today, we’re taking steps to notify some employees that their jobs are under consideration or that their places will be eliminated. Like all businesses, our business is evaluated by us on a regular basis. This can result in increased investment in some places and, from time-to-time, re-deployment others.”
The software giant did not specify how many jobs would be cut.Â Â Microsoft President Brad Smith had no comment Thursday when asked during a conference call about cuts.
The restructuring mostly affects the software giant’s sales operations away from the U.S. under chief marketing officer Chris Capossela, executive vice presidents Judson Althoff and Jean-Philippe Courtois. All three executives Monday notified employees of a reorganization, but didn’t mention layoffs.
Microsoft employsÂ 121,567 people worldwide, and 71,594 in the U.S.
Microsoft shares fell 0.7%, to $68.57.
Earnings of Microsoft’s Surface computer line — they plunged 26%, dragging PC sales 7% down — undercut third quarter results while its Azure cloud revenue doubled.
The Redmond, Wash. company’s profits total soared 28 percent to $4.8 billion. Sales rose 8 percent to $22 billion.
Strong earnings made up for its drop making great on the assurance of Althoff for the Azure cloud-computing support of Microsoft are the centerpiece of the organization’s sales plan.
The shift in plan of Microsoft had a ripple effect on its own earnings, prompting a transfer to phone assistance from on-site support, states Microsoft analyst Jack Gold.
“This is not the first realignment Microsoft is undertaking as a result of change to cloud, and it is unlikely to be the last one,” Gold says.