Microsoft Corp sold its Atlas online advertising server for an undisclosed amount to Facebook about a year ago. During that time, speculations went on like crazy that the giant technology firm would eventually shed off its advertising sales division. Despite the denials from some company officials last year, it turns out that there was truth to those talks.
The company has just laid off most of the people from its global advertising sales team, according to sources. The redundancies were reportedly confined within the Advertising division. Sources claims that the move would eventually affect staff members not just in the US but also across the UK and other locations where there are sales offices.
This massive layoff scheme would reportedly affect Microsoft staff who are into selling ad space for its MSN, Xbox, Bing, Outlook, Windows 8, and Skype properties.
The job reduction
It has not been announced to the public yet, but according to well-placed sources, this move was communicated internally last Wednesday. The company was aid to have advised its advertising global sales personnel that they have just been made redundant.
Accordingly, this massive layout scheme is part of a larger job cuts in the company’s history. Just this summer, Microsoft trimmed its workforce by up to 18,000 roles across the whole business.
But according to a company spokeswoman, Microsoft completed almost 18,000 job reductions in July. Those that just happened recently could also spread across various business units in various countries within the company.
When asked about which units or divisions would be affected, Microsoft simply refused to share more information. But it is expected to provide more details soon or as soon as such reported redundancies are implemented and completed.
Failure to beat rivals
Some observers and analysts believe that the job cuts would go as far as going to the departure of most of the global salesforce, if not all. However, many executives may be spared from the action.
There are also speculations that this action was also influenced by failure of the team to beat sales of competitors. According to industry sources, Microsoft had just taken 2.45% of the global display ad market in 2013. That compares to the 31.92% and 5.82% market share of Google and Facebook, respectively.
For comments and suggestions, leave a message in the comments section below. Like and Follow our Facebook page for more stories and to stay up-to-date with the latest happenings.