The world braces as Microsoft get ready to sack up to 17 per cent of their employees
It seems as though Microsoft is getting ready to let go of around 15,000 jobs around the world. The job cuts would be the first that the highly popular company would have made since the company’s creation 32 years ago.
Microsoft currently employs around 91,000 people around the world, however, news is circling the world that Microsoft is planning on getting rid of between 10 per cent and 17 per cent of their workforce from around the world.
The news about the job cuts is said to come on January 15 and MSN and Microsoft EMEA are apparently said to be preparing to feel the worst effects of the job cuts.
However, criticism has been felt from all over the world as many people don’t believe that so many jobs will be cut. Henry Blodget, a Wall Street Analyst, wrote in a blog that, “A cut of this magnitude seems highly unlikely, although the targeted areas do make sense. 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. The only way we could see Microsoft laying off this many people is if the company decided to eliminate business units.”
The news was first released on the Fudzilla website who claimed that the news was poised to be announced by Microsoft a week before the company’s second quarter earnings report on January 22.
Fudzilla said, “So far, we haven’t managed to confirm what departments or regions will be hit the worst, but we’re hearing that MSN might be carrying the brunt of the layoffs. We’re also hearing rumours about the possibility of somewhat larger staff cuts at Microsoft EMEA (Europe, Middle East and Africa).
“It’s unlikely that Microsoft will be laying off a lot of people in departments and regions that are doing well, and considering the recent upturn in console sales, we have a feeling that at least most of the people working in the Xbox 360 departments will be pretty safe,” claimed the site.
Then Henry Blodget went on to announce that the claims may be true, but again he does not believe that the number of employees losing their jobs will be as high as Fudzilla claims they will be.
“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. Microsoft’s margins are still fine, and much of its revenue is generated from multi-year contracts,” claims Blodget.
If there are to be cuts then it does make sense to make the most of them in the MSN department considering how badly the department has done compared to other departments in the company. The console department for example has achieved good results with its Xbox 360 and therefore relieving employees of their jobs would not be the most sensible direction for Microsoft to move towards.
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