Microsoft to begin axing thousands of employees as soon as this week

“Microsoft Corp. is planning its biggest round of job cuts in five years, as the software maker looks to slim down and integrate Nokia Oyj’s handset unit, people with knowledge of the company’s plans said,” Dina Bass reports for Bloomberg.

“The reductions — which may be unveiled as soon as this week — will probably be in areas such as Nokia and divisions of Microsoft that overlap with that business, as well as marketing and engineering, said the people, who asked not to be identified because the plans aren’t public,” Bass reports. “The restructuring may end up being the biggest in Microsoft history, topping the 5,800 jobs cut in 2009, two of the people said. Some details are still being worked out, two of the people said.”

“While Microsoft has undergone smaller, intermittent job cuts in individual businesses — for example trimming a few hundred positions in advertising sales and marketing in 2012 and some marketing jobs across the company earlier that same year — the company has only undertaken a companywide restructuring impacting thousands of workers once before, in 2009 at the start of the recession. Over the course of that year, the company cut 5,800 jobs, or about 5 percent of its workforce at the time,” Bass reports. “Some of the cuts will be among software testers, said one of the people.”

MacDailyNews Take: Microsoft tests its software?

“Microsoft is the latest technology company seeking to reduce costs by trimming jobs. Hewlett-Packard Co. in May announced more cuts after an 11th-straight quarter of declining sales,” Bass reports. “CEO Meg Whitman has said she will eliminate as many as 16,000 jobs on top of 34,000 already cut.”

Read more in the full article here.

MacDailyNews Take:

When we were an agrarian nation, all cars were trucks. But as people moved more towards urban centers, people started to get into cars. I think PCs are going to be like trucks. Fewer people will need them. And this transformation is going to make some people uneasy… because the PC has taken us a long way. They were amazing. But it changes. Vested interests are going to change. And, I think we’ve embarked on that change… We like to talk about the post-PC era, but when it really starts to happen, it’s uncomfortable. – Steve Jobs, June 1, 2010

Death is very likely the single best invention of life. It is life’s change agent. It clears out the old to make way for the new. – Steve Jobs, June 12, 2005

21 Comments

  1. What is truly sad is that many of the MS staff will be pink slipped before they can read and understand Nadella’s 3,100 word Manifesto.

    With only 5% of the words, Tim Cook was able to succinctly and accurately express Apple’s vision.

    While Nadella labored on about MS’s existing hardware, software, and services; Tim mentioned nothing of that…only WHY Apple exists and why they do what they do.

    Nadella uses great corporate speak which tells me he does not have a clue what to do! He confuses tactics with strategy. Again the Titanic is without a captain.

  2. MDN Take: Apple’s “near death” & resurrection” that caused the return of the iCEO Steve Jobs, was a cleansing period for Apple, Inc. too… DOJ should have demanded that MS be broken up into 2 or 3 smaller companies when it had the chance.

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