Microsoft Said to Plan Sales Reorganization Focused on Cloud

(Bloomberg) -- Microsoft Corp. is planning a global sales reorganization to better focus on selling cloud software, according to people familiar with the matter.

The restructuring is scheduled to be announced as soon as next week and will impact the Worldwide Commercial Business under Judson Althoff and Jean-Philippe Courtois’ global sales and marketing group, the people said.

Job cuts are likely to result from the changes, said the people, who asked not to be identified speaking about unannounced plans. The shifts will be some of the most significant in the sales force in years and will also impact local marketing efforts in various countries, said one of the people. There may be other smaller personnel changes in other parts of the company too, one of other people said. A Microsoft spokesman declined to comment.

The company’s sales force has been trained for years to sell software for use on desktops and servers. Now it’s more important to convince customers to sign up for cloud services hosted in Microsoft’s datacenters. The Redmond, Washington-based company wants to accelerate this switch to add more revenue and catch cloud market leader Amazon.com Inc.

Friday is the end of Microsoft’s fiscal year, the first in which Althoff and Courtois have run the sales and marketing organizations, taking over from Kevin Turner who left in 2016.

The Puget Sound Business Journal reported earlier than the company planned a companywide reorganization around the cloud.

To contact the reporter on this story: Dina Bass in Seattle at dbass2@bloomberg.net.

To contact the editors responsible for this story: Jillian Ward at jward56@bloomberg.net, Alistair Barr, Robin Ajello