Microsoft Corporation (NASDAQ:MSFT) workers beware: job cuts could be on the way as early as this week.
Microsoft to cut more than 5,000 jobs
The tech giant could be announcing more than 5,000 job cuts, with marketing and engineering divisions seeing the ax, particularly in the global Xbox team and in its UK-based European group. Citing people with knowledge of the company’s plans, Bloomberg reports the developments, saying the company seeks to reduce costs by $600 million. Other layoffs could occur in the recently acquired Nokia division and other overlapping business units.
The job cuts could be the largest restructuring in Microsoft history, surpassing the slashing of 5,800 jobs in 2009 and addresses Microsoft Corporation (NASDAQ:MSFT)’s swelling job rolls in the wake if it’s September Nokia acquisition, which added 30,000 employees to the payroll. After the Nokia acquisition the company had 127,104 employees and pledged at the time of the acquisition to reduce expenses.
Jobs cuts by departments
Other staff reductions could come from streamlining software development processes. Engineering teams have traditionally built software with three primary job functions: the less technical program manager, keeping an eye on schedules and business needs; the highly technical developers, whose job it is to program complex applications to meet business needs; and testers, a third set of eyes to review the software and enhance user experience and identify bugs or computer glitches. Under the new system of developing software with cloud methods, the testers could be left out in the cold as developers test and fix bugs instead of a separate team of testers, Nadella said in an interview last week.
The process streamlining came after a July 10 memo from newly minted Microsoft Corporation (NASDAQ:MSFT) Chief Executive Officer Satya Nadella when he issued his first company mission statement which called for greater emphasis on mobile devices, cloud-computing and productivity software. Nadella, who took over from Microsoft founder Steve Balmer in February of 2014, is also said to be looking at changes to the engineering organizational chart to drive additional efficiencies.
Nadella has been generally silent on details but said he would provide additional information after Microsoft reports its fiscal fourth quarter earnings this July 22.
Separately Microsoft Corporation (NASDAQ:MSFT) is seeking to boost their network security business. The firm is said to be in talks to acquire Israeli computer security firm Aorato, a maker of firewall software backed by Accel Partners, Bloomberg is reporting. The talks, however, are at an early stage and Aorato may also be negotiating with other parties, the report noted.