Within the coming week, Microsoft is expected to lay off around 700 of its employees. According to sources, this round of layoffs will be conducted when the company reports its quarterly earnings on January 26. As compared to the workforce of 113,000 of people, this is not a very large number. But this lay off is part of an earlier plan to reduce 2,850 roles that were announced in June in Microsoft’s annual report. Microsoft declared at that time that it actually plans to complete those cuts by June 2017 indicating it towards the end of the company’s fiscal year.
The reports state that majority of the 2,850 roles that were planned to be cut have already been excluded. The approaching cuts are not aimed to any specific group but will be conducted across the company’s worldwide offices as well as business units. The areas include marketing, human resources, sales, finance, engineering, etc.
The dismissals on smaller levels are meant to modernize the skill set in various units. These cutoffs will not be helpful in reducing costs neither these will have much effect on Microsoft’s overall headcount. It is because hiring is still going on in the company with over 1,600 job openings posted on LinkedIn.
Microsoft has been going through rounds of layoffs in the past in which I typically give 60 days to search for a new position internally along with a two weeks’ pay for every 6 months of employment. But the company has experienced several rounds of layoffs under Microsoft’s CEO Satya Nadella. In its last fiscal year, it reduced nearly 7,400 positions primarily from the phone business whereas the biggest layoff in company’s history was the cut of 18,000 jobs in the year 2014.
Via: Business Insider