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Microsoft reorganizes entire sales organization

Microsoft is reorganizing its entire sales organization to better focus on its fast-growing cloud-computing business, according to an internal memo sent to employees on Monday morning.

Most people believe this reorganization is likely to include layoffs — although none have been formally announced — and some do not believe cuts will be very deep, Business Insider reports.

Internally, there are people who think this change, even if it involves layoffs, could be a step in the right direction, as Microsoft increasingly tries to refocus its efforts on selling cloud services rather than software licenses, according to chatter on Blind, an anonymous app popular with Microsoft employees.

This reorganization was reported last week by outlets including Bloomberg.

Microsoft is streamlining its sales organization to focus on two groups of customers, GeekWire reported. The first is enterprises, and the second, which Microsoft is referring to as SMC, will include small, medium, and corporate customers.

READ MORE: New ‘Microsoft 365’ package bundles Windows and Office for businesses

The changes don’t necessarily reflect disappointing sales of cloud services. Instead, the point is to reduce the costs involved in selling those services.

From 1 July, the beginning of the corporation’s new fiscal year, Microsoft Switzerland also announced a reorganisation of its management. Yvonne Bettkober becomes head of the Specialist Technical Unit and her position of the head of SME and partner business will be taken over by Michael Gubelmann. Stefano Malle has been appointed head of the Customer Success Unit.

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