Microsoft Job Cut Rumor

A leak from a reported Microsoft insider and published Sunday may point to rare but substantial layoffs at the Windows developer. The company's alleged job cuts are described as "substantial" and are said to involve many feedback meetings that are actually attempts to screen out underperforming employees or those with relatively little usefulness. As much as 10 percent of Microsoft's finance department may be cut outright.

Other teams are also being reorganized or having their operating budgets cut, according to reports.

If accurate, the cuts will come on January 15th, or exactly one week before Microsoft is poised to announce its results for the fall quarter that ends this month. Such reductions are believed to hint at significant financial difficulty at Microsoft, which had near-flat growth even in the summer, when the economic downturn had yet to fully materialize.

Much of Microsoft's more recent difficulty has been attributed to its struggle to sell Windows Vista, which has been dropped in favor of its less expensive and less performance-intensive XP counterpart for developing countries, netbooks and many business PCs.

Microsoft hasn't commented on the validity of the claimed job reductions.

By Electronista Staff

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