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Microsoft To Lay Off Another 2,850 People In the Next 12 Months (businessinsider.com)

Posted by BeauHD on from the gloomy-news dept.

An anonymous reader writes from a report via Business Insider: Microsoft is planning to lay off 2,850 more employees in the next 12 months or so, according to Microsoft's full 10-K report it filed with the Securities and Exchange Commission. Part of the document reads: "In addition to the elimination of 1,850 positions that were announced in May 2016, approximately 2,850 roles globally will be reduced during the year as an extension of the earlier plan, and these actions are expected to be completed by the end of fiscal year 2017." Business Insider reports: "The first 1,850 layoffs mentioned here were mainly from Microsoft's struggling smartphone business, including 1,350 employees in Finland working at what was once Nokia world headquarters. These layoffs also included people in Microsoft's salesforce, which was recently reorganized and saw the departure of COO Kevin Turner. In total, Microsoft laid off 7,400 employees in its last fiscal year, which ended on June 30th, 2016. The new layoffs are a continuation of the same plan, and include the sales group as well as others. About 900 people affected by the new layoffs were already informed during the sales reorganization, according to a person familiar with Microsoft's plans."

2 of 162 comments (clear)

  1. pivoting by phantomfive · · Score: 5, Informative

    They are pivoting to the cloud. Firing people who worked on non-cloud projects (mainly smartphone), hiring new ones to work on cloud projects. Incidentally, the total Microsoft workforce is ~115,000, so this is not a huge amount.

    --
    "First they came for the slanderers and i said nothing."
  2. Seems reasonable. by galabar · · Score: 3, Informative

    It looks like 2014 saw a large bump in employees:

    Fiscal Year Ending Head Count Net Revenue (US$) Growth Net Income (US$) Growth
    June 30, 2016 114,074 $85.32B -9% $16.79B 38%
    June 30, 2015 117,354 $93.58B 8% $12.19B -45%
    June 30, 2014 128,076 $86.83B 12% $22.07B 1%
    June 30, 2013 99,139 $77.85B 6% $21.86B 29%
    June 30, 2012 94,290 $73.72B 5% $16.98B -27%
    June 30, 2011 90,412 $69.94B 12% $23.15B 23%

    Going from 99,139 in 2013 to 114,074 in 2016 seems like it tracks better with previous growth patterns.

    http://news.microsoft.com/fact... But please don't let this change your opinion. :)