Report: Microsoft Planning Massive Layoffs, Xbox Marketing Teams Affected

Technology giant said to be planning its biggest round of job cuts since 2009.


Just days after Microsoft CEO Satya Nadella announced a bold new vision for the company, it was reported today by business news publication Bloomberg that the technology giant will soon enact its most extensive round of layoffs in five years. The move comes as as a result of Microsoft's desire to "slim down" and integrate the Nokia handset business unit, people with knowledge of the matter said.

The job losses could be announced as early as this week, and will "probably" come from the Nokia unit and other divisions of Microsoft that overlap with that business, the report says. Marketing and engineering jobs will also be cut, including marketing positions at Microsoft's Xbox division, according to Bloomberg.

This rumored round of job cuts is setting up to be the biggest in company history, following a reduction in workforce of over 5,800 people in 2009. Details of Microsoft's plans are still being "worked out," two other sources said. A spokesperson for Microsoft declined to comment when approached by Bloomberg. We were told the same: "Microsoft does not comment on rumor or speculation."

According to the latest available official data, Microsoft had 127,104 employees as of June 5. This includes about 30,000 people who came aboard after Microsoft bought Nokia's handset unit for $7.2 billion last year.

Microsoft will announce earnings for its latest quarter next Tuesday, July 22.

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