Microsoft has reinvented itself over the past few years as a cloud-focused software company, and looks like it is applying that strategy to more and more parts of its huge operation with a reorganization of its sales force, according to a report.
Bloomberg reported Friday that Microsoft will cut some jobs and move others around in a reorganization directly impacting two separate divisions of the company. The Worldwide Commercial Business group, led by Judson Althoff, and the global sales and marketing group, led by Jean-Philippe Courtois, will be affected by moves that Bloomberg called “some of the most significant in the sales force in years.”
To succumb to a cliche on a sunny Friday afternoon before a long weekend, battleships don’t turn on a dime. Microsoft has taken great strides transforming from a packaged software company to a cloud company since CEO Satya Nadella (who will be speaking at our GeekWire Summit this fall) was promoted to the top spot in 2014, but it still sells a fair amount of commercial software the old-fashioned way.
Yet nearly all the significant growth is coming from Microsoft’s cloud services, as seen in the chart below from its last earnings release. Shifting sales and marketing resources toward those services seems like a natural step in Microsoft’s evolution, which is of course no consolation to anyone who is about to lose their job.
Microsoft declined to comment on the report.
Editor’s note: This post was updated with Judson Althoff’s correct first name.