News

Microsoft expected to announce job cuts

Microsoft expected to announce job cuts

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

(Reuters) – Microsoft Corp is planning its biggest round of job cuts in five years as the software maker looks to integrate Nokia Oyj’s 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.

Since absorbing the handset business of Nokia this spring, Microsoft has 127,000 employees, far more than rivals Apple Inc and Google Inc. 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)

Recent Headlines

in Sports, Viral Videos

Nike hype video welcomes LeBron back to Cleveland

Fresh
14-overlay4

The video huddles the whole city as "The King" returns home.

in National

Thomas Menino, Boston’s longest-serving mayor, dead at 71

menino

The longest-serving mayor in Boston history who led the city after the 2013 marathon bombing, has died.

in Entertainment

Apple CEO Tim Cook: ‘I’m proud to be gay’

timcook

Cook wrote a column published on Thursday and said he hopes that his declaration can help others.

in Entertainment, Sports

The best #ChevyGuy tweets from the World Series

bumgarner1

World Series MVP Madison Bumgarner was awarded a new truck with "technology and stuff" by a very nervous Chevy employee and Twitter took notice.

in National

U.S. economy grows 3.5% in third quarter

shopping

A smaller trade deficit and a surge in defense spending buoyed U.S. economic growth in the third quarter.