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Report: Microsoft Preparing To Lay Off Thousands
Microsoft is in the process of acclimating to 30,000 new employees from its acquisition of Nokia’s handset unit in April of this year. The company, which promised to realize $600 million in cost savings in the year and half following the purchase, is reportedly preparing to make a big round of staffing cuts.
Bloomberg reports that cuts could top the last round of major layoffs in 2009, which numbered 5,800. Impact would be felt across the company and around the world, with Xbox teams potentially at risk. Specifically, Microsoft’s UK marketing team (which has recently stumbled multiple times) would be affected.
Additional cuts would also come from Nokia staff and overlapping areas such as engineering. Last week, CEO Satya Nadella reaffirmed his commitment to Xbox, but also refocused the company on mobile, cloud, and productivity solutions.
Microsoft currently employs over 127,000 individuals, including the 30,000 brought on in the Nokia deal. We’ve reached out to the company for comment and will update should we receive a response.
Update: A Microsoft representative responded to our request, indicating that the company will not be commenting at this time.
[Source: Bloomberg]
Our Take
Microsoft has a big job ahead realizing the cost savings, and job cuts (especially where there is duplication of effort) is inevitable.Thankfully, Nadella recently committed to Xbox, which means that cuts shouldn't be excessive (though that is hardly a silver lining when jobs are at stake).
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