Microsoft expected to announce job cuts this week
Krisztian Bocsi/Bloomberg via Getty Images
By Supriya Kurane

Microsoft (MSFT) is planning its biggest round of job cuts in five years as the software maker looks to integrate Nokia Oyj's handset unit, Bloomberg reported, citing people with knowledge of the company's plans.

The reductions, expected to be announced as soon as this week, could be in the Nokia unit and the parts of Microsoft that overlap with that business, as well as in marketing and engineering, Bloomberg reported.

Since absorbing the handset business of Nokia this spring, Microsoft has 127,000 employees, far more than rivals Apple (AAPL) and Google (GOOG) Wall Street is expecting Chief Executive Officer Satya Nadella to make some cuts, which would represent Microsoft's first major layoffs since 2009.

The restructuring may end up being the biggest in Microsoft history, topping the 5,800 jobs cut in 2009, the report said.

Some of the job cuts will be in marketing departments for businesses such as the global Xbox team, and among software testers, while other job cuts may result from changes Nadella is making to the engineering organization, Bloomberg reported.

Last week, Nadella circulated a memo to employees promising to "flatten the organization and develop leaner business processes" but deferred any comment on widely expected job cuts at the software company.

Nadella said he would address detailed organizational and financial issues for the company's new financial year, which started at the beginning of this month, when Microsoft reports quarterly results on July 22.

Microsoft couldn't be immediately reached for comment outside regular business hours.


Increase your money and finance knowledge from home

Small Cap Investing

Learn now to invest in small companies the right way.

View Course »

What are Penny Stocks

The lucrative and dangerous world of penny stocks.

View Course »

Add a Comment

*0 / 3000 Character Maximum

86 Comments

Filter by:
blinkcook

Today's announcement of Microsoft layoffs is a tragedy. I hope those affected keep their cool and move forward quickly! The first step is to create an awesome resume! Here are some great tips: http://expertbeacon.com/creating-resume-will-get-noticed

July 17 2014 at 1:28 PM Report abuse rate up rate down Reply
Jean Danek

We can all discuss this matter until our heads explode. Nothing is going to change. We are going down the drain really fast now, no stopping it.

July 16 2014 at 8:54 PM Report abuse +1 rate up rate down Reply
outtolook

Yet, this same company and Bill Gates are screaming that the Congress must increase the number of Visas for foriegn workers , because they just can't find enough US workers to fill their jobs! Millions of college students have graduated and can't find any jobs except fast food and min Wage! These rich elite who donate zillions to the Democrats just want cheaper workers, so of course Democrats are screaming that we need more workers from overseas as well! Republicans are fighting the increase!

July 16 2014 at 1:53 PM Report abuse +1 rate up rate down Reply
1 reply to outtolook's comment
ted_wilson7

All college degrees are not created equal….. Liberal arts degrees, for the most part, aren't worth the paper they are printed on….Go to any college commencement and look at who is graduating from the schools of math and science and 3/4's of them are foreign. They are the ones getting the high paying jobs…… Schools of Math, Science, and business, they 're to working at Burger King.

July 16 2014 at 3:46 PM Report abuse rate up rate down Reply
1 reply to ted_wilson7's comment
ted_wilson7

they 're to working at Burger King.****** they're NOT working at Burger King.

July 16 2014 at 3:47 PM Report abuse rate up rate down
Iselin007

You couldn't paint this economy good if you had Leonardo Devinci, all you got is a canvass of doom to work.

July 16 2014 at 9:43 AM Report abuse +1 rate up rate down Reply
ted_wilson7

mac2jr
Strong Leadership is exactly what got us into the MESS we are in, the Leadership of R. Reagan, G.H.W. Bush, and G.W. Bush Jr. along with Dick Cheney, ****** The last leader this country had was Ronald Reagan…The economy under Reagan experienced the largest expansion in history since the settling of the West. .From 1986-2007, except for the short recession in 92-93 ( when Clinton raised taxes) the country was in essentially full employment, thanks to the Reagan policies, continued by the Republican Congress through the Clinton and most of the Bush presidencies.
Wake up dope

July 16 2014 at 8:17 AM Report abuse +1 rate up rate down Reply
1 reply to ted_wilson7's comment
Iselin007

The 1990's was loaded with crap. Manufacturers in NJ were hiring temps on a just in time basis while they sold their businesses off to buyers or resold them again. By the time we got to the 2000's those still here were cleaning up remaining orders and restructing while their off shore plants were being built and ready to go into production. Today you can see how this constant termoil in the manufacturing sector played out both Nationally and in NJ. We lost over 60% of our manufacturing since 1990 and the additional suppliers that fed those plants. You can't replace those jobs with crap jobs and you can't fool anybody by using visa workers to stuff the employed numbers, because we are buying into this bull crap.

July 16 2014 at 9:38 AM Report abuse +1 rate up rate down Reply
1 reply to Iselin007's comment
ted_wilson7

Today you can see how this constant termoil in the manufacturing sector played out both Nationally and in NJ. We lost over 60% of our manufacturing since 1990******NJ and the rest of the corrupt union states, ran manufacturing out…..and now that those jobs are returning,,,,,GUESS WHAT ? They aren't returning to NJ, NY, IL, MI, OH, ect., ect., ect.

July 16 2014 at 2:21 PM Report abuse rate up rate down
ted_wilson7

mac2jr
The companies were provided with 10-years of NO TAXES, but did use the infrastructure to the point that it was totally destroyed. Then when the BILL came due, and they had to PAY TAXES, they fleed and left the residents with NO INCOME, thus whomever remained had to make up the difference via higher taxes and fees. ****** NY has just recently begun running national adds to attract business to the state, bating them with deferred taxes….. THEY HAVE NOT been deferred over the past ten years. dope

July 16 2014 at 8:13 AM Report abuse rate up rate down Reply
mac2jr

How many companies closed up shop in the U.S.A. under the Bush Administration, oh yes something like 100,000 or more, and how many people got put out to pasture under the Bush Administration, oh yes some 17,000,000..

And how many people died under the Bush Administration, oh yes, 100,000 plus civilians in Iraq and Afghanistan, 4,500 American Soldiers, and 4,000 plus American Contractors.

And how many people were made homeless under the Bush Administration, oh yes, 2,000,000 had to flee their homes and become illegal refuges in foreign nations that could not handle the overload.

And how many people do we now have in the VA hospitals for 'shell - shock' from the Bush Administration wars, oh yes, about 40% of all the VA patients.

And how many people were put out of work by the current Congress and Governors that decided to go to war with the Obama Administration and prove that Obama cannot create jobs, of yes about 1,500,000 at various government agencies.

And what has happened in the past 59 months, oh yes the UE came down, employment is up, the country has recovered from the worse depression in its history, congrads to President Obama for stopping two illegal wars, turning the VA into one of the best medical facilities in the world, providing hundreds of thousands of jobs rebuilding our roads, bridges, and infrastructure, and treating Women, Gays, Native Americans, people of Color, and the unfortunate as HUMANS that deserve the respect and thanks that most deserved and did not get under prior administrations.

Wake up America, WAKE UP.... please....

July 16 2014 at 1:20 AM Report abuse -1 rate up rate down Reply
1 reply to mac2jr's comment
ted_wilson7

what has happened in the past 59 months……The U.S. pulled out of the middle east and it's now explode into numerous sectarian wars, Illegal immigrants pour across our southern border, corporations are set to push millions onto Obamacare with yet still no reduction in healthcare costs, Obama's approval rating has fallen from 68% to 39%, Fast n Furious, Benghazi, The most divisive, racist, anti business POTUS in history has failed ……. OBAMA…One Big ASS Mistake America

July 16 2014 at 7:54 AM Report abuse +3 rate up rate down Reply
lonewolfbearstar

delmail333
Windows 8.0 and 8.1 are both steaming piles of crap, what do you expect them to do when they can not sell what they build ?
==========================================================================

Then run your PC on Linux, or buy a Mac.

July 16 2014 at 12:47 AM Report abuse +3 rate up rate down Reply
1 reply to lonewolfbearstar's comment
mac2jr

I am not for sale...

July 16 2014 at 1:21 AM Report abuse -1 rate up rate down Reply
1 reply to mac2jr's comment
ted_wilson7

Good, because you're not worth sht

July 16 2014 at 8:37 AM Report abuse +1 rate up rate down
holly shit

Fire the Xbox division. Over priced junk.

July 16 2014 at 12:00 AM Report abuse -2 rate up rate down Reply
1 reply to holly shit's comment
lonewolfbearstar

Sorry to hear you were forced at gunpoint to buy an Xbox One. Maybe next time your captors will let you buy a PS4.

July 16 2014 at 12:51 AM Report abuse +2 rate up rate down Reply
Steve

In 2009 Microsoft, layed off 6,000 employees and here we are a few years later, they are set to lay off another 6,000 a sign that Silicon Valley will be in a hurt with no immediate future for those unemployed because of what this administration is doing to employment. When employed by IBM, all the years, never once heard of a layoff within the company, not even in the World Trade Organization. But, when the company announced its first Lay-off, It shook everyone and it looks like the trend never went away. So now, a secure job, because of what agenda has given us, the best most can get is a temporary job, with no promise. The temporary employment, is derived from the Obama Hellthcare and employers who have set the hours to meet the requirements to have temp employees, instead of full time and saving money by not having to fulfill the requirement to give healthcare insurance. Attribute that to the agenda, that was voted on by the Left.

July 15 2014 at 11:38 PM Report abuse -2 rate up rate down Reply
1 reply to Steve's comment
mac2jr

Obama's Healthcare was the product of the Republicans and the Democrats that built on George Washington's, Mitt Romney's, Hillery Clinton's, and Richard Nixon's attempts to get America WAKE to the FACT that millions did not have health care and it was costing us, the taxpayer's billions.

Getting companies out of the health care insurance providership is a good thing, as it will allow companies to earn more, and cause the average worker to realize the true cost of insurance, thus fight like hell to change the system to a Single Payer System that protect 100% of the population from the financial disaster caused by the greed of medical schools, medical hospitals, medical equipment manufacturers, and medical personnel, all people that depend on FEAR for making a profitable living.

Wake up America, WAKE UP... please...

July 16 2014 at 1:27 AM Report abuse rate up rate down Reply