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

‘Deflategate’ judge to rule soon after Brady, NFL talks fail

tombrady

The National Football League and its players union failed to reach a settlement in their dispute over New England quarterback Tom Brady's four-game "Deflategate" suspension despite weeks of talks.

in Entertainment, Sports

Hulk Hogan begs forgiveness, wants back in WWE

22-overlay16

The wrestling icon is pleading with fans for their forgiveness after he was caught on tape using a racial slur, insisting the controversial comments were made at the "lowest point" of his life.

in Sports

Ronda Rousey wants you to have a ‘knockout’ breakfast

20-overlay15

The MMA champion has teamed up with fast-food chain Carl's Jr. to pitch their latest breakfast creation.

in National

Arctic chills, messy energy politics await Obama in Alaska

16-overlay16

Shrinking glaciers, Arctic temperatures and a mix of messy energy politics await President Barack Obama as he begins his historic trip to Alaska.

in National

As Common Core results trickle in, initial goals unfulfilled

commoncore

Overall scores are higher than expected, though below what many parents may be accustomed to seeing.