Microsoft Layoffs Reportedly Coming

Employees of tech titan Microsoft are undoubtedly hunkering down. Redmond is widely expected to announce significant layoffs sometime this week.

If the layoffs are in the ballpark being discussed -- in excess of five or six thousand -- they could be the largest from the company since 2009. At that time, Microsoft cut 5,800 jobs, which then represented about 5 percent of the company. Currently, Microsoft has just over 127,000 employees.

Bloomberg News, citing "people with knowledge of the company's plans," has reported that cuts will be made in divisions that overlap with newly acquired Nokia, such as engineering and marketing. Reportedly, details are still being worked out. Microsoft has not commented on the report.

100 Nokia Jobs

But it's not just Microsoft-proper employees who are getting cut. Reuters news service has noted that, according to a Finnish newspaper, 1000 Nokia jobs are being eliminated in Finland, including about half from a now-closed research and development unit in the northern part of that country.

About 4,700 of the newly acquired 25,000 Nokia employees work in Finland. The others are dispersed throughout 50 countries.

Microsoft CEO Satya Nadella, who succeeded Steve Ballmer, has said that his company needs to become more efficient, with a greater focus on mobile, cloud, and productivity.

Last week, Nadella sent a long memo to employees that asked them to "reinvent productivity."

He has said that "nothing is off the table," leading to some speculation that the employee cuts may go beyond what is needed to avoid duplication with Nokia. For instance, there are rumors that cuts could also be applied to personnel who work on marketing for Xbox.

In the memo, Nadella also said, "Organizations will change. Mergers and acquisitions will occur. Job responsibilities will evolve. New partnerships will be formed. Tired traditions will be questioned."

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