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Microsoft to cut 'thousands' of staff, report says

Microsoft is clearing the decks as it heads into a new financial year, with reports that the company's sales team is facing significant layoffs.

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As corporate America kicks back a gear for the Fourth of July weekend, Microsoft employees could face a different reality when they return to work, with the company reportedly set to lay off thousands of employees as part of a major staffing reshuffle.

While the start of the new fiscal year on July 1 is traditionally a time for housekeeping, the changes could be more significant as the company reorganises its sales division and attempts to shift its focus toward a more cloud-focused business.

Citing a source with knowledge of the restructure, TechCrunch reports "thousands" of staff could face the axe around the world.

But others are refraining from painting such a grim picture. ZDNet reports the cuts could be less significant than expected, and that Microsoft could attempt to reassign affected staff to other divisions in its business.

For its part, Microsoft has not commented on the layoffs or confirmed numbers. 

In an emailed statement, a spokesperson for the company said, "Microsoft is implementing changes to better serve our customers and partners."

Either way, it's not the first time Microsoft has cleared the decks. This time last year, Microsoft cut 2,850 jobs as part of changes to its phone hardware and sales teams -- an increase on the 1,850 roles it announced would be culled just two months prior.

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