Report: Microsoft likely to lay off thousands of employees

by Hilbert Hagedoorn on: 07/16/2014 09:01 AM | source: | 11 comment(s)

Even though Microsoft is doing well with its Xbox business, it appears that it's not invulnerable to layoffs. Bloomberg reports that the company is preparing its biggest round of employee dismissals since it let go 5,000 employees back in 2009.

It appears that certain Xbox marketing teams may be affected by the move. According to the report, a majority of the layoffs will probably be in Nokia, since Microsoft recently acquired it last April. Marketing and engineering divisions, including those involved with Xbox, could also see some cutbacks. Although restructuring details are still being formulated, the job cuts could occur "as soon as this week." Microsoft had no comment on the matter, stating, "Microsoft does not comment on rumor or speculation."

Peter Wootton, a spokesman for Redmond, Washington-based Microsoft, declined to comment. Some of the job cuts will be in marketing departments for businesses such as the global Xbox team, said the people. The European Xbox team is based in Reading, U.K. The company had 127,104 employees as of June 5, after adding about 30,000 in its acquisition of Nokia’s handset unit.

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XP-200
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#4874377 Posted on: 07/16/2014 10:23 AM

WoW, "As soon as this week", that's a bummer for anybody on the receiving end of that type of layoff.

Loobyluggs
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#4874391 Posted on: 07/16/2014 10:52 AM

I've been to the offices in reading before. That's a lot of hardworking people there, but still if you have got m$ on your cv (curriculum vitae, for those who don't know) then your prospects are generally high.

AsiJu
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Joined: 2010-10-16

#4874406 Posted on: 07/16/2014 11:27 AM

Based on local news reports, this has to do with Microsoft's acquisition of Nokia mobile phones.

Apparently there now are "duplicate" functions because of that and people (most likely former Nokian employees) will have to go.

Makes you wonder what Elop and Ballmer were thinking in the first place... why did Microsoft buy Nokia if they now need to let people go?

Or, more likely, that's just being used as an excuse to cut costs.

Sprig
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#4874943 Posted on: 07/16/2014 11:04 PM

Elop's performance as CEO was one of the worst in history, it was so bad that its not out of the realms of possibility that he was just a Microsoft plant.

Clouseau
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Joined: 2011-05-17

#4875090 Posted on: 07/17/2014 03:43 AM

"...Last week, Nadella circulated a memo to employees promising to "flatten the organization and develop leaner business processes" but deferred any comment on widely expected job cuts at the software company.

Nadella said he would address detailed organizational and financial issues for the company's new financial year, which started at the beginning of this month, when Microsoft reports quarterly results on July 22."
http://www.reuters.com/article/2014/07/15/us-microsoft-redundancies-idUSKBN0FK07O20140715

The ending of the Reuter's article on the same topic.

This was to be expected when integrating an aquisition. It's tough to be with the company that is being taken over. Why keep redundant positions. Nokia was just a vehicle Microsoft used to gain footing in the mobile phone market. Why reinvent the wheel when purchasing it can be accomplished; cheaper and quicker. Both articles also mentioned that Microsoft has more employees than Apple. That is another reason why Microsoft needs to reorganize their labor force. It is easier to be on the receiving end of layoffs. Working with directors in thinning out the herd is worse. Not all us financial guys are heartless bastards.

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