Microsoft expected to announce job cuts this week - Bloomberg

Tue Jul 15, 2014 9:36am IST

The Microsoft logo is seen at their offices in Bucharest March 20, 2013.  REUTERS/Bogdan Cristel/Files

The Microsoft logo is seen at their offices in Bucharest March 20, 2013.

Credit: Reuters/Bogdan Cristel/Files

Related Topics

Stocks

   

(Reuters) - Microsoft Corp (MSFT.O) is planning its biggest round of job cuts in five years as the software maker looks to integrate Nokia Oyj's (NOK1V.HE) handset unit, Bloomberg reported, citing people with knowledge of the company's plans.

The reductions, expected to be announced as soon as this week, could be in the Nokia unit and the parts of Microsoft that overlap with that business, as well as in marketing and engineering, Bloomberg reported. (bloom.bg/1mcqs14)

Since absorbing the handset business of Nokia this spring, Microsoft has 127,000 employees, far more than rivals Apple Inc (AAPL.O) and Google Inc (GOOGL.O). Wall Street is expecting Chief Executive Satya Nadella to make some cuts, which would represent Microsoft's first major layoffs since 2009.

The restructuring may end up being the biggest in Microsoft history, topping the 5,800 jobs cut in 2009, the report said.

Some of the job cuts will be in marketing departments for businesses such as the global Xbox team, and among software testers, while other job cuts may result from changes Nadella is making to the engineering organization, Bloomberg reported.

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.

Microsoft could not be immediately reached for comment outside regular business hours.

(Reporting by Supriya Kurane in Bangalore; Editing by Gopakumar Warrier)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Social Media

Reuters Showcase

New Device

New Device

Facebook's Oculus unveils new virtual reality prototype device.  Full Article 

Slow Rollout

Slow Rollout

Los Angeles iPad rollout for schools slowed by technical challenges - report.  Full Article 

CEO Watch

CEO Watch

When music stops for Oracle CEO dance, Catz may grab Ellison's chair - analysts.  Full Article 

New iPhones

New iPhones

Apple faithful line up for latest, larger iPhones  Full Article 

Cutting Jobs

Cutting Jobs

Microsoft lays off 2,100 as part of earlier job cut plan.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage