Microsoft prepares for biggest-ever job cuts: insiders

Microsoft prepares for biggest-ever job cuts: insiders
Insiders said the reductions could be the greatest in Microsoft’s history.
Published: 15 July 2014 - 10:54 a.m.
By: Stephen McBride

Microsoft is gearing up for massive job cuts as it looks for ways to rectify job overlap in the wake of its acquisition of Nokia's devices business, Bloomberg reported.

According to anonymous insiders, the cuts could be announced as early as this week, mere days after chief executive Satya Nadella issued a memo to staff calling for greater focus on cloud, mobile and productivity.

As of June 5, Microsoft employed 127,104 staff, after acquiring around 30,000 through its Nokia deal. Microsoft had previously announced it would pursue a $600m-per-year cost-cutting programme in the 18 months following the close of the transaction.

While not revealing exact numbers, the insiders said the reductions could be the greatest in Microsoft's history, eclipsing the 5,800 lay-offs in 2009 at the height of the global recession, which at the time represented some 5% of its workforce.

Apart from overlapping business areas stemming from the Nokia acquisition, the insiders indicated that some marketing and engineering jobs might also be cut.

In particular Nadella last week revealed that he favoured trimming engineering jobs. In the era of cloud, he said it was better for software developers to test code than have the job fall to a separate testing team.

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