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

14 hours ago in Election 2016, National

Fiorina drops out of the presidential race

Republican presidential candidate Carly Fiorina waits to be introduced at a campaign event at Maple Avenue Elementary School Saturday, Feb. 6, 2016, in Goffstown, N.H. (AP Photo/David Goldman)

The former technology executive announced on Twitter that she is suspending her campaign.

16 hours ago in Election 2016, National

Christie expected to end 2016 White House bid

Republican presidential candidate, New Jersey Gov. Chris Christie embraces his son Patrick during a primary night rally in Nashua, N.H., Tuesday, Feb. 9, 2016. At left is Christie's older son Andrew and wife Mary Pat at right. (AP Photo/Charles Krupa)

Christie had banked his presidential prospects on a strong finish in New Hampshire, but finished behind most Republican rivals.

16 hours ago in National

Yellen: Fed not likely to reverse course on rates despite risks

U.S. Federal Reserve Board Chair Janet Yellen testifies at the House Financial Services Committee in Washington February 10, 2016. REUTERS/Gary Cameron

Chances are slim the Federal Reserve would need to reverse the rate tightening cycle it began in December.

17 hours ago in Lifestyle, National

Twitter to change homepage to customize tweet displays to individuals

A 3D printed Twitter logo is seen in front of displayed stock graph in this illustration picture made in Zenica, Bosnia and Herzegovina, February 3, 2016. REUTERS/Dado Ruvic

The change to the timeline - as the homepage is known - is also designed to appeal to advertisers.

21 hours ago in National

Senate to vote on hitting North Korea with tougher sanctions

northkorea

The Senate is considering legislation to hit North Korea with more stringent sanctions.