The Redmond, Washington-based tech giant's restructuring could include an organizational merger between its enterprise customer unit and one or more of its SME-focused divisions. The company declined to comment, but changes are expected to be announced this week.
Judson Althoff and Jean-Philippe Courtois took the lead at Microsoft's sales and marketing divisions last summer after former COO Kevin Turner left. Althoff has publicly criticized previous sales approaches.
The cuts come after Microsoft laid off 4,700 employees in 2016, according to Securities and Exchange Commission filings.
Microsoft shares were down slightly in late-morning trading.
Here is who else in tech has been letting people go.
In April 2016, Intel Corp. (INTC) laid off 12,000 employees — 11% of its workforce — as it switched its focus from selling PCs to cloud computing and the internet of things. Intel said the layoffs would save the company $750 million in 2016, and $1.4 billion per year after that.
In May, Cisco Systems Inc. (CSCO) announced that it would lay off 1,100 people in addition to the 5,500 people, which accounted for 7% of its employees, it said it was letting go in August 2016. The company said it was expecting fourth-quarter revenue to fall 4% to 6%.
IBM (IBM) instituted a cut of 5,000 employees in March 2016, after four years of declining revenues. The company laid off more employees in May 2016, but that amount was undisclosed, according to Fortune.
In June 2016, Bloomberg reported LM Ericsson Telephone Co. (ERIC) was planning to lay off 3,000 to 4,000 employees over that summer but that the number could reach up to 25,000, about 20% of its workforce, over time. The cuts came in the midst of increased competition and decreasing sales.