Microsoft may soon announce its largest workforce reduction ever

Microsoft has been widely rumored to be planning significant layoffs in the wake of its Nokia deal, and now a new report claims the company's plans for staffing cuts could be announced as early as this week.

According to a Bloomberg article published today, Microsoft plans to make the announcement soon, and the layoffs could be the Windows maker's largest workforce cut ever, topping 2009's 5,800 layoffs. The cuts will primarily come in the areas of business, marketing and engineering, though "some details are still being worked out," Bloomberg reports.

Microsoft CEO Satya Nadella hinted at potential layoffs last week in his memo to employees, saying the company's leadership team would "share more on the engineering and organization changes we believe are needed" sometime this month.

The purchase of Nokia's devices and services unit is believed to be the primary reason for the layoffs, with overlapping positions from the two companies resulting in redundancies. Microsoft added between 25,000 and 30,000 new employees as part of the acquisition, bringing its total headcount to more than 127,000 employees. Additionally, Bloomberg reports that some other areas will be hit with layoffs, with its sources saying some cuts "will be in marketing departments for businesses such as the global Xbox team."

Previous reports indicated Microsoft may cut up to 10 percent of its workforce in the layoffs. By comparison, the Nokia acquisition increased Microsoft's employee count by nearly 30 percent.

Source: Bloomberg | Image via Microsoft

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24 Comments

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Well they have to keep those profit numbers looking healthy somehow.
- Fire a bunch of employees to sustain margins - check
- increase prices to sustain profit margins - check
- force users to upgrade - check
- switch from retail to subscription - check
- double down on marketing instead of innovation - check
Can't see MS jerking customers and employees around for long until there is no one left.

recursive said,
Well they have to keep those profit numbers looking healthy somehow.
- Fire a bunch of employees to sustain margins - check
- increase prices to sustain profit margins - check
- force users to upgrade - check
- switch from retail to subscription - check
- double down on marketing instead of innovation - check
Can't see MS jerking customers and employees around for long until there is no one left.

So when google fired 10% of its employees after merging with Motorola, they did it for the profit right?

Funny how you constantly avoid answering that question even though its the third time I've asked you.

-Razorfold said,

So when google fired 10% of its employees after merging with Motorola, they did it for the profit right?

Funny how you constantly avoid answering that question even though its the third time I've asked you.

I don't know. Why do you keep asking me about Google? Why would I know or care?

The present article and discussion is about Microsoft, if you have something to add without changing subject, I am all ears.

recursive said,

I don't know. Why do you keep asking me about Google? Why would I know or care?

The present article and discussion is about Microsoft, if you have something to add without changing subject, I am all ears.


Because whenever a company that isn't Microsoft does something (ie Google fired 10% of employees) you never feel the need to say anything about it.

But when MS does the exact same thing, then it's oh god MS is literally the devil.

How long for tech sites to look at this as an OMG THE SKY IS FALLING thing instead of what it really is, pruning the extra branches after you grew.

elenarie said,
I feel like there are too many non-developers in MS giving directions.

that's how every company works, there are always more administration and marketing then actual engineers

neufuse said,

that's how every company works, there are always more administration and marketing then actual engineers


As someone who works with other companies as an engineering consultant, I'd say that is pretty spot on across all companies I've worked with. Most managers could easily be replaced with a loud obnoxious barky dog, from what I can tell. My last project, every time the manager for the engineers I was working with got in on a meeting or telephone call, productivity crawled to a hault as everyone danced around pleasing someone who really didn't seem to be doing anything productive (just barking).

simplezz said,
I feel sorry for all those Nokia employees. That being said, it's not wholly unexpected.

Why?
The layoffs will come from both sides of the fence. Best people get to stay. period.

deadonthefloor said,

Why?
The layoffs will come from both sides of the fence. Best people get to stay. period.

Why? Because its never a fun thing to hear when someone loses their jobs when they have done nothing wrong. Being on both ends of this, I feel for those being layed off. And a lot of times, it has nothing to do with who was the better person. It is who is friends/buddies with the people making the decisions.

Layoffs is always a bad sign. If Nadella is smart he'd close up shop now and go to work full time on the Microsoft Shawarma & Falafel cart.

Damn falafels are delicious.

Figure 8 Dash said,
Layoffs is always a bad sign. If Nadella is smart he'd close up shop now and go to work full time on the Microsoft Shawarma & Falafel cart.

Damn falafels are delicious.


This again? When Google bought Motorola they laid off 10% of their workforce too. Was that a bad sign? Did Google fail? Are they bankrupt?

Oh wait no. It sucks for the employees who will lose their job but it's pretty standard when mergers are involved. You're going to get a ton of redundancies and people doing the same job.

-Razorfold said,

This again? When Google bought Motorola they laid off 10% of their workforce too. Was that a bad sign? Did Google fail? Are they bankrupt?

Oh wait no. It sucks for the employees who will lose their job but it's pretty standard when mergers are involved. You're going to get a ton of redundancies and people doing the same job.

The joke
__________________________

your head


:p

Well Microsoft did just swallow a large 25K employee company division including HR, Accounting, Janitors, etc. I'm sure they have to get a big roll of toilet paper and will need some magazines to get rid of the excess.