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Microsoft rumoured to be planning mass job losses
Microsoft is planning to axe up to 15,000 jobs in what would be first major redundancies at the software company, according to reports.
By Rupert Neate
Jan 2 2009
Microsoft chief executive Steve Ballmer is reported to be cutting significant job cuts at the software company
Fudzilla, a US-based technology blog, claims staff at Microsoft have been told 15,000 of the computer giant's 90,000 global workforce will be given their marching orders on January 15.
"The rumour that Microsoft was set to lay off people on January 15 is no longer a rumour but a fact. Staff at Microsoft have been informed that the company is readying major layoffs to its worldwide operations and it's not a small cut, either," the blog said.
A spokeswoman for Microsoft declined to comment.
Henry Blodget, the respected technology blogger and former high-flying Wall Street analyst, said the cuts, which would represent 17pc of Microsoft's workforce, were "highly unlikely".
He said Microsoft is far more likely to consider the sale of MSN, its internet search and messaging business.
"Unless Microsoft's business has been absolutely crushed in the past two months, there is no reason for the company to suddenly cut this much cost, Mr Bloget said.
"Microsoft's margins are still fine, and much of its revenue is generated from multiyear contracts – and is therefore unlikely to see a massive intra-quarter hit."
Microsoft chief executive Steve Ballmer is expected to release a new version of the Windows Operating System at the Consumer Electronics Show (CES) in Las Vegas next week. The company's second quarter results are due on January 22.
Microsoft is planning to axe up to 15,000 jobs in what would be first major redundancies at the software company, according to reports.
By Rupert Neate
Jan 2 2009
Microsoft chief executive Steve Ballmer is reported to be cutting significant job cuts at the software company
Fudzilla, a US-based technology blog, claims staff at Microsoft have been told 15,000 of the computer giant's 90,000 global workforce will be given their marching orders on January 15.
"The rumour that Microsoft was set to lay off people on January 15 is no longer a rumour but a fact. Staff at Microsoft have been informed that the company is readying major layoffs to its worldwide operations and it's not a small cut, either," the blog said.
A spokeswoman for Microsoft declined to comment.
Henry Blodget, the respected technology blogger and former high-flying Wall Street analyst, said the cuts, which would represent 17pc of Microsoft's workforce, were "highly unlikely".
He said Microsoft is far more likely to consider the sale of MSN, its internet search and messaging business.
"Unless Microsoft's business has been absolutely crushed in the past two months, there is no reason for the company to suddenly cut this much cost, Mr Bloget said.
"Microsoft's margins are still fine, and much of its revenue is generated from multiyear contracts – and is therefore unlikely to see a massive intra-quarter hit."
Microsoft chief executive Steve Ballmer is expected to release a new version of the Windows Operating System at the Consumer Electronics Show (CES) in Las Vegas next week. The company's second quarter results are due on January 22.
