Microsoft's reorganization blamed for job cuts at Waggener Edstrom PR firm

When Microsoft announced its big reorganization in July, CEO Steve Ballmer stated there were no plans to lay off any company employees as a result of the changes. That may still be true, but it looks like a company that works hand-in-hand with Microsoft is feeling the effects and has cut some workers as a result.

This week, the Portland Business Journal reports that Waggener Edstrom Worldwide, which handles public relations for many of Microsoft's divisions, laid off 43 workers, or about five percent of its total workforce. Of that number, 33 workers were based in the Pacific Northwest.

In a statement, Waggener Edstrom said that Microsoft's move to centralize its communications operations, spurred by the "One Microsoft" reorganization, was part of the reason for their layoffs this week. The company's Senior Vice President of Corporate Communications Scott McLaughlin added, "We have a long history with Microsoft, and we adapt with them. Along with their reorganizations, there were some budget reductions that we took."

Waggener Edstrom handles general media requests for Microsoft and is also in charge of PR for nearly all of Microsoft's divisions, with the biggest exception being its Xbox unit, which is handled by Edelman.

Source: Portland Business Journal | Image via Microsoft