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 Entertainment

Chris Evans makes ‘Marvel’-ous directoral debut

Fresh
17-overlay6

The "Before We Go" director talks about pulling his film together and how being in the Marvel world makes it easier to get movies off the ground.

in Entertainment

Love Hulu but hate the ads?

hulu

Hulu is rolling out an ad-free version of its subscription service.

in Entertainment

Cate Blanchett to play Lucille Ball in new biopic

cateblanchett

The movie will chronicle the entertainer's 20-year marriage to Desi Arnaz, her "I Love Lucy" co-star.

in Music

Dustin Lynch brings ‘Hell of a Night’ to ‘Today’

25-overlay4

The country singer performed his chart-climbing hit, on the heels of announcing plans for his first headlining tour.