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Microsoft may slash jobs on Wednesday

updated 10:00 pm EDT, Tue July 6, 2010

Microsoft cuts hint not back to full growth

A late-breaking scoop from within Microsoft has revealed that the company is close to cutting jobs as soon as Wednesday. The headcount lost isn't known but wouldn't be as large-scale as with the over 5,800 jobs cut at the lowest point of last year's economic crash. They come after the end of Microsoft's fiscal year in June and would partly reflect a shift in product focus.

Those speaking to TechFlash couldn't discern which divisions were most likely to be hit by any staff reductions, although they did note that Microsoft would keep hiring in other areas.

While not much has been exposed, a possible focus of cuts may be the Windows Phone team. It recently saw a major shakeup following the departures of J Allard and Robbie Bach that scrapped much of the oversight between the mobile group and CEO Steve Ballmer. Also, the death of the Kin saw the failed phone line's staff rolled back into the Windows Phone team, a move that at many companies can trigger layoffs to reduce overhead.

The company has largely returned to health with a Windows 7-related bounce back in the winter, but it's still understood to be growing cautiously both due to a still uncertain economy as well as multiple weak points in its business. Microsoft continues to bleed money in Bing and other online services, and its practical reboot of its mobile strategy has both seen the failure of Kin as well as customers caught between the soon-to-be-obsolete Windows Mobile and the future release of Windows Phone 7. Corporate buyers also have yet to adopt Windows 7 on a wide scale due to legacy software and a desire to see the new OS thoroughly tested in the field before rolling out upgrades.



By Electronista Staff
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Comments

  1. thebiggfrogg

    Fresh-Faced Recruit

    Joined: Jul 2007

    -1

    cheez whiz!

    whoop a**! zoinks!

  1. dliup

    Fresh-Faced Recruit

    Joined: Jan 2006

    +3

    too bad

    Too bad they are not axing Ballmer. (Or is that good news for Apple?)

  1. martinX

    Fresh-Faced Recruit

    Joined: Sep 2008

    +7

    Never good

    Always a shame when the rank and file get sacked because of incompetent management.

  1. localnet

    Fresh-Faced Recruit

    Joined: Feb 2005

    -6

    Watch for more of this...

    MS has problems, that is for sure. But, as we get closer to Jan 1, 2011, watch for more layoffs, along with US companies being sold to foreign entities, as business fights for survival.

    The coming new taxes, along with the ones that will be expiring will have a catastrophic effect on small to large business across the board. With all of the coming costly federal mandates and then the fact that more and more states are looking at insolvency, watch business and businesses contract along with the economy as the government in all forms comes looking for more revenue. Unfortunately the nanny state utopia that so many want is not "free", as many of you will soon find out.

    May you live in interesting times.

  1. dynsight

    Fresh-Faced Recruit

    Joined: May 2005

    0

    Me Too Mentality

    Microsoft has suffered for a long time from a "Me Too" mentality. They cannot stand it if another technology company has success in an arena where Microsoft has minimal or no presence.

    Home Networking Hardware, Game machines (although this may be a success for them), Phones (kin), tablet PC, Bing (just let Google have the fun... create apps for them), Portable Music Players... If they focused their energy on their core business, and then expand into growing markets (or create markets) over time.

    I suspect that Microsoft is unfocused, and doing too many things. If they really created a great OS and a simpler, more powerful office suite, that is a good thing. Web enabled Office was a great idea (although I've not used it). Maybe a lightweight windows that will run QUICKLY on a tablet...

  1. iphonerulez

    Fresh-Faced Recruit

    Joined: Nov 2008

    -1

    I'm willing to bet that this cut will

    boost Microsoft's share price. Wall Street loves to see job cuts. Nothing like unloading a bunch of dead wood. I always joke around about Microsoft, but I've got Windows 7 on all my Intel Macs and it's a pretty good OS. A little more bloated than Windows XP, but I've found it to be very reliable. However, Microsoft's mobile division leaves a lot to be desired and in this time of mobile growth it's really going to hurt Microsoft.

    In this economy it's going to be a really bad time for those getting their pink slips. I'm not happy to hear about anyone getting fired.

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