Anyone who has worked at Microsoft® can attest to the frequency with which they reorganize the workforce and the disruption that typically accompanies the reorg. The disruption isn’t limited to MS employees, as channel partners and large customers question whether their contacts will change. Customers and partners may also be impacted by delays in deliverables or communication which are often caused by uncertainty or speculation on the part of Microsoft employees.
Major reorgs, such as the widely-anticipated sales and marketing event which was recently confirmed, often cause MS employees to question their future responsibilities, goals, and management. In a worst-case scenario, people worry that they may lose their job. This was particularly prevalent during recent weeks as rumors of massive layoffs circulated.
By early July, details began to emerge, although Microsoft has announced very little to the public. They have confirmed that they are laying off workers, and that most of them will be outside of the US. The number 3,000 continues to appear, but Microsoft has not confirmed or denied it.
As for the reorg, the major change is that the sales organization will be divided into two main teams. One team will be focused on enterprise customers, and the other on everyone else. The latter includes small, medium, and corporate (SMC) customers. The enterprise team will be organized around the following six verticals: education, financial services, government, healthcare, manufacturing, and retail.
In addition to the organizational changes, Microsoft is said to be shifting from their traditional strategy of selling specific products to one of multi-product solutions and digital transformations. As part of this effort, they referenced a “Digital Win Room”, which will focus exclusively on large opportunities around the world.
It’s too early to determine exactly what a digital transformation or multi-product sales strategy will entail, or how customers or partners may be impacted, but hopefully, dealing with Microsoft will return to some degree of normalcy now that the announcements have been made and much of the speculation can be put to rest.