Microsoft to Give the Pink Slip to Hundreds of Employees

The company could reorganize some of its business to cut costs

By on January 12th, 2012 15:12 GMT

Microsoft is reportedly set to send home a great deal of employees in the next weeks, in an attempt to cut down expenses.

A recent report on Bloomberg suggests that the Redmond-based company might give the pink slip to hundreds of its employees, and that the move will be made in the next 30 days.

ZDNet’s Mary-Jo Foley cites unnamed sources that confirmed Microsoft’s plans to fire up to 40 percent of the Central Marketing Group (CMG).

The team has around 600 full-time employees at the moment, and there are over 2,000 outside collaborators.

This means that the 40 percent cut could actually happen, although no official confirmation on such plans has been delivered until now.

Three years ago, Microsoft cut 5,000 jobs. Steve Ballmer, the company’s CEO, said at the time that further headcount reductions were possible.

However, it appears that other Microsoft divisions will also see personnel reductions, including the Windows Phone and the Server and Tools businesses.

The Redmond-based software giant is expected to reorganize these divisions, though it is yet unclear what that might involve.

Microsoft has already replaced the leadership of its Windows Phone business, and might reduce the headcount of that arm.

ZDNet also notes that Robert Wahbe, the head of server and tools marketing, will be leaving the company in February. Takeshi Numoto, the corporate vice president in charge of office product management at the moment, will take his position.

Brad Wilson, general manager of Microsoft’s Dynamics CRM business, is also leaving his current role. His responsibilities will pass to Dennis Michalis.

The software company has yet to confirm any plans to send home more of its employees, or to reorganize some of the said divisions.

Chances are that all will be unveiled as soon as January 19th, when the company will report on its earnings for the second fiscal quarter of the year (the company’s fiscal year starts on June 1st).

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