Update, July 7: Microsoft has confirmed the layoff reports.
Originally published on July 5:
According to reports, Microsoft has reorganized its global sales team to focus on cloud services.
Specifically, the company will target large enterprise customers as well as small and medium businesses.
This is according to an email sent by Judson Althoff, an executive vice president who works with partners to spread the adoption of Microsoft technology.
Before this, the company spent significant resources wooing commercial customers such as in the public service sector, startups, and other specific industries.
The email does not mention layoffs, but a source at Microsoft believes that it could be in the thousands as Microsoft offices all over the world will be affected.
In Althoff's email, he mentioned that the move was to "align the right resources for the right customer at the right time."
Microsoft often restructures itself at the end of its fiscal year. Its fiscal year ended last Friday.
Since taking over as Microsoft CEO in 2014, Satya Nadella has continually reorganized the company and has increasingly focused Microsoft's efforts on cloud services.
Source: Wall Street Journal.