Microsoft to lay off thousands this week?
Things are not looking good for Microsoft, with internal sources claiming a big restructuring is underway. And where there’s restructuring, there’s usually layoffs.
This time though, the layoffs could reach 4-5% of the workforce, which is a huge and unprecedented number for the company, if you consider the fact that Microsoft currently employs a little over 127,000 people all over the world. Following an open letter sent to employees last week noting significant changes that need to be made to engineering and organization within Microsoft, CEO Satya Nadella – who took over from Steve Ballmer earlier this year – declined to respond to questions regarding layoffs. He did say more details on the changes he mentioned will be shared on July 22, when Microsoft shares its Q4 financial report.
Update: Unfortunately the axe is much bigger than anticipated. In a memo, Microsoft CEO Satya Nadella says the company will cut 18,000 positions in the next year, with former Nokia employees expected to account for around 12,500 jobs. “We are moving now to start reducing the first 13,000 positions, and the vast majority of employees whose jobs will be eliminated will be notified over the next six month,” says Nadella.
That’s easily the biggest workforce reduction ever from Microsoft, easily topping the 5800 layoffs in 2009.