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
24 Comments - Add comment