Microsoft will slash 500 jobs in its software business group from April to September to focus on its new B2B software business.
The cuts will see some software developers lose their jobs in Australia and New Zealand, while some regional teams will also be cut.
Microsoft’s Australia and South Africa division, which employs about 2,000 people, has also been cut by 300 jobs.
“Microsoft is taking a very different approach to the software business than most other companies,” Microsoft’s head of product and strategy, Tom Gostelow, said.
“We’re looking at the business differently.
We’re looking to grow the business.”
Mr Gostelswo said the company had been cutting jobs as part of its plan to diversify its business, which it had previously identified as a focus area for the company.
“It’s not about being a ‘big-ticket’ company, it’s about being more efficient, more agile, and having more agility,” he said.”[We’re] looking at what the business can do, what the opportunities are in terms of growing and what the challenges are.”
If we can make that work then that’s really good for us.”‘
We need to be more agile’Microsoft’s new B 2B software group will focus on the growth of its B2C software business and its cloud-based services.
Its Australian division is the second of Microsoft’s three software divisions to be cut, as the company looks to scale up its operations.
The move is expected to save the company around $5.5 billion over the next three years, but some staff will lose their positions.
Microsoft said the cuts would be phased in over the course of the year, but would be rolled out over a six-month period, with most affected software developers and operations staff being laid off by the end of June.
Mr Gstelswosaid the move was part of Microsoft taking a “harder look at its business”.”
The way we operate today is we’ve been building up a software business that is quite large, but we need to grow it more aggressively,” he told reporters in Sydney.”
So we’re moving the focus to what we call the B2b business, and we’re looking very closely at our cloud-centric business, our B2A business.
“Microsoft has said it plans to hire more than 1,000 new employees by the middle of next year to ensure its software businesses are growing at a faster rate than other companies.