Microsoft not downsizing yet, internally announces reorganisation

Microsoft had officially announced on Monday within the company that it will go through a sales reorganisation.

microsoft reorganisation

Microsoft had officially announced on Monday within the company that it will go through a sales reorganisation. Through a memorandum letter circulated internally, the software conglomerate has sought to transform itself into a cloud software company.

In the memorandum letter undersigned by Microsoft executive vice president Judson Althoff, the reorganisation was explained to follow the "commercial and consumer model". There were no announced layoffs as previously speculated.

Microsoft is now looking after its commercial field sales team around two customer units.

Under the Enterprise Operating Unit are three groups: enterprise customers' team will focus on highest growth opportunities; the specialist team will give attention to new businesses; customer success unit will focus on the tasks involving usage and consumption of products and services.

Althoff stressed that the Enterprise Operating Unit will work with Microsoft's Marketing Operations, Enterprises Services, and Commercial Software Engineering. The latter was the recently dispersed Developer Experience unit led by John Shewchuk.

Microsoft is targeting six vertical markets as the unit's top priorities. These include government, manufacturing, retails, education, financial services, and health. Horizontally, the company seeks to address what it called "solution areas": modern workplace, apps and infrastructure, data and artificial intelligence, and business applications.

The Small, Medium and Corporate division generally takes responsibility for the company's small and medium businesses and corporate accounts.

Microsoft continues its venture into digital transformation as part of the reorganisation. It said it will continue to strive for its growth as a software and cloud firm with more products at hand, including hardware devices, mixed reality, gaming, and more.

More announcements are expected within the company in the next two weeks. But there are no hints yet with regards to the implementation of the reported "massive layoffs". The industry has been so fluid in the last few years and Microsoft has been one of the companies to have much-publicized movements inside the organisation.

This article was first published on July 5, 2017