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Sources say cuts will be former Nokia personnel, plus engineering and marketing.

by Lee Hutchinson - July 15 2014

 

http://cdn.arstechnica.net/wp-content/uploads/2014/07/nadellapano-640x268.png

Microsoft CEO Satya Nadella addressing employees. According to a Bloomberg report, Microsoft is preparing to undergo a significant staff reduction, potentially shedding as much as five percent of its employees around the world.

Citing "people with knowledge of the company’s plans," Bloomberg elaborates that the cuts—which could exceed 5,800 people—will be made public potentially some time this week and will focus on areas of the company that were acquired from Nokia, as well as some marketing and engineering groups. The report specifically notes that some of the cuts "will be in marketing departments for businesses such as the global Xbox team."

 

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IBM had a huge layoff in the early 90's. They relied on outside contractors to pick up the slack. They needed staff, but filling positions with outside contractors reduced their costs : payroll tax, employee benefits, insurance etc.

 

I wonder if Microsoft has any plans on doing something similar.

 

 
@BB97 wrote:

IBM had a huge layoff in the early 90's. They relied on outside contractors to pick up the slack. They needed staff, but filling positions with outside contractors reduced their costs : payroll tax, employee benefits, insurance etc.

 

I wonder if Microsoft has any plans on doing something similar.

 

 

Well given that they were the ones burned on the permatemps lawsuit, probably not :)

 

http://www.fastcompany.com/40787/permatemps-contretemps
And loyalty of the workforce goes out of the window. Reducing costs like that carries its risks.

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