Microsoft’s overhaul will affect Malaysia, says source

microsoft-malaysiaPETALING JAYA: Microsoft’s plans to reorganise its company will likely affect Malaysia as well, says a source familiar with the matter.

“They’ve been talking about this since last year,” the source said.

“I don’t know how many employees exactly will be affected in the region, globally or in Malaysia, but it is expected to be more than 2,000.”

The source said the plan to reorganise had been in Microsoft’s annual 10-K report last year, adding that it was normal for Microsoft to optimise its resources from time to time.

The 10-K report is an annual filing that publicly traded companies in the US are required to send to the Securities and Exchange Commission.

Microsoft is reportedly cutting an unspecified number of jobs amid news that the US tech giant is reorganising its global sales operations.

According to news reports, the layoffs come as the company refocuses its sales force on making it a pivotal part of businesses which rely on cloud computing.

Chief executive Satya Nadella has been pushing to reduce Microsoft’s focus on software and to shift instead to cloud computing and business services.

Under Nadella, the company has been moving towards a cloud-based model strategy as the industry shifts away from the packaged software that once was its core business.

In its annual 10-K report to the US Securities and Exchange Commission in July last year, Microsoft said it expected to lay off 2,850 employees over the course of 12 months.

“In addition to the elimination of 1,850 positions that was announced in May 2016, approximately 2,850 roles globally will be reduced during the year as an extension of the earlier plan, and these actions are expected to be completed by the end of fiscal year 2017,” the report said.

The earlier 1,850 job cuts were primarily because of Microsoft’s struggling phone and hardware business which saw the departure of then-chief operating officer Kevin Turner in July last year.

Turner was subsequently hired to head Citadel Securities, a Chicago-based trading firm.

Microsoft cut approximately 7,400 jobs in 2015, and 4,700 last year.

It also completed a US$26 billion (RM111 billion) acquisition of professional social network LinkedIn in late 2016 as part of its new strategy.