Microsoft’s Latest Layoffs Impact More than 1,000 Employees, Prompting Major Changes to Sales and Customer Service Teams
Microsoft recently implemented a round of layoffs totaling over 1,000 employees, primarily affecting customer service and sales roles within the company. Insiders familiar with the situation unveiled additional details, revealing that the cuts extend beyond the 10,000 layoffs initially announced by Microsoft earlier this year. These individuals, who requested anonymity to discuss sensitive matters, reported that Microsoft’s Digital Sales and Success group, which formerly boasted thousands of employees, has been disbanded. Furthermore, the role of customer solutions manager has been eliminated, resulting in some employees transitioning to a new position known as customer success account management. Engineering project managers and marketing departments were also impacted by the layoffs.
Insider sources indicated that the company’s primary focus has shifted from assisting customers to accelerating consumption. This change has left Microsoft’s once-prominent customer service group struggling to meet demand. While it is customary for Microsoft to make changes at the start of a new fiscal year, which began on July 1, the company’s leaders have remained relatively tight-lipped regarding the recent developments. Many managers were reportedly left in the dark about the plans, with some only discovering the layoffs on the day they were executed. There has been no overarching explanation for the alterations made to the sales and customer service teams, which also involved significant reductions in travel and expense budgets.
Criticism has arisen amongst Microsoft employees regarding the lack of specific details provided by Chief Commercial Officer Judson Althoff during the company’s sales kickoff event earlier this year. Internal messages obtained by insiders revealed discontent, with one post questioning whether the Digital Sales and Success team would be replaced by AI tools.
While Microsoft reported 210 layoffs in the state of Washington, as mandated by state filing requirements, insiders assert that the actual number of job cuts exceeded this figure by several hundred. GeekWire reported on these developments last week.
According to a Microsoft spokesperson, organizational and workforce adjustments are a necessary part of managing the business, occurring regularly. The company plans to prioritize strategic growth areas to support its customers and partners moving forward.
However, the layoffs, along with the suspension of raises and reductions in bonuses and stock awards, have taken a toll on employee morale at Microsoft. Insider recently reported that less than half of Microsoft employees surveyed expressed willingness to stay with the company if presented with a comparable offer from a different organization.
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