Microsoft announced Thursday that it will be undergoing its largest round of layoffs ever, trimming up to 18,000 jobs (or, put in a different way, almost 14% of their workforce).  Not surprisingly, many of you reached out to us, as we act as the conduit between your business and Microsoft through IT services or supporting Microsoft Dynamics ERP and CRM solutions.  You asked:  How does this affect us?  In short, it does not affect businesses using Microsoft software all too much.  Here’s why:

  • Where the layoffs are:  Many of the jobs being cut are fallout from Microsoft’s acquisition of Nokia.  Over two thirds of the layoffs are jobs that were made redundant via this acquisition.  Others include jobs in the Xbox original entertainment studio and, interestingly, software testers.  In a more collaborative environment based on cloud computing, Microsoft believes the developers developing the software can also test the software.
  • Where the layoffs aren’t:  None of the layoffs appear to be affecting Microsoft’s Business Solutions (Dynamics) division.  In fact, they’re still aggressively looking to hire in the ERP and CRM space.
  • The company’s overarching rhetoric:  Earlier in the week, Microsoft’s Worldwide Partner Conference took place, and this conference featured a speech by CEO Satya Nadella continuing to emphasize the “mobile-first, cloud first” strategy.  This has been consistent with the firm’s strategy since Nadella took over.

All in all it appears to be nothing to worry about.

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