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Microsoft may announce biggest round of layoffs in company history this week- RUMOR

Discussion in 'Off-Topic Discussion' started by sparkyscott21, Jul 15, 2014.

  1. sparkyscott21

    sparkyscott21 Moderator Staff Member

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    Redmond, Wash., software giant Microsoft, which has struggled to find an answer to the success of Apple's iPad and iPhone, is said to be planning major staff reductions that could be the single biggest round of layoffs in the company's history.

    The layoffs could be announced this week, and may top the 5,800 jobs that the company cut in 2009, according to unnamed sources who spoke with Bloomberg. The reductions are said to be part of a restructuring planned to reduce overlaps between Microsoft's mobile division and the Nokia Oyj handset unit it acquired last year for $7.2 billion.

    That purchase of Nokia added some 30,000 employees to Microsoft's payroll, bringing its total number of personnel to nearly 130,000 as of early June.

    The cost cutting measures are just the latest in a string of changes for the company, as it attempts to reclaim some of its past glory since lost to mobile devices, particularly Apple's iPhone and iPad. Microsoft was a major player in the smartphone space before the iPhone and devices running Google's Android took over the market, and sales of low-end Windows PCs have been hurt by the success of the iPad.

    The biggest recent shakeup for Microsoft was the ouster of former Chief Executive Steve Ballmer, who many pundits and investors blamed for an inability to adapt in a changing mobile market. His successor, Satya Nadella, officially took over as CEO in February.

    While Microsoft was caught flat-footed by the iPhone and iPad, it took the company even longer to bring its popular Office suite to the iPad. Office for iPad became available this March, four years after Apple's market leading tablet first hit store shelves.

    Apple's recent success undoubtedly helped push Microsoft into the hardware space, where the company develops its own hybrid tablet-laptop Surface devices, along with the recently acquired Nokia handset division, and even rumors of a forthcoming smart watch. Those moves mark a major change for Microsoft, which previously focused largely on software and services under the regime of Ballmer.







    7-15-14

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  2. sparkyscott21

    sparkyscott21 Moderator Staff Member

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    Microsoft, as was expected, announced on Thursday that it will be laying off employees this year, but the total number of cuts are much higher than anticipated, representing by far the largest-ever personnel reduction in the Windows maker's history.

    A total of 18,000 workers will be laid off over the next year, Microsoft revealed, with the bulk of those — 12,500 jobs — coming from professional and factory positions related to the purchase of Nokia. Microsoft's $7.2 billion buyout of Nokia's hardware division added some 30,000 employees to the company's payroll.

    With the remaining 5,500 layoffs coming from other departments, the 18,000 sum represents by far the largest round of personnel cuts in Microsoft's corporate history. Its previous record was the axing of 5,800 jobs in 2009.

    As of early June, Microsoft had just over 127,000 total employees. That means the 18,000 cuts would represent more than 14 percent of the Redmond, Wash., company's global workforce.

    Microsoft said the "restructuring plan" will be "substantially complete" by the end of this year, and fully completed by the end of June 2015. It expects to incur up to $800 million in associated severance and benefit costs, as well as between $350 million and $800 million asset-related charges.

    Word first leaked earlier this week that Microsoft was set to announce a major new round of layoffs, though it was unclear at the time whether the total number of cuts would be the company's largest ever. With Thursday's official announcement, it's now known that the 18,000 removed workers will be more than three times larger than its previous biggest layoffs.

    The measures are the latest in a string of changes for the company, which is attempting to reclaim some of its past glories which have been lost to mobile devices. Microsoft was a major player in the smartphone space before the iPhone and device's running Google's Android took over the market, while sales of low-end PCs have been hurt by the success of the iPad.

    While 18,000 jobs will be lost in the next year, the biggest firing may have been the ouster of former Chief Executive Steve Ballmer, who is rumored to have been squeezed out of the company due to a lack of support from Microsoft's board of directors. Ballmer faced significant criticism for failing to adapt and compete with Apple's iPhone and iPad, while high-profile misses with the company's Windows Vista and Windows 8 operating system releases were believed to have contributed to slumping PC sales.

    Ballmer's replacement, and the man overseeing the massive round of layoffs, is CEO Sayya Nadella, who took over the role in February. The cuts being made under his watch are part of a major attempt to turn the company's fortunes around and take back lost market share in mobile and reinvigorate sales growth in PCs.





    7-17-14

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