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.

Eddie Makuch is a news editor at GameSpot, and you can follow him on Twitter @EddieMakuch
Got a news tip or want to contact us directly? Email news@gamespot.com

Written By

Eddie Makuch is a news editor at GameSpot, and would like to see the Whalers return to Hartford.

Discussion

438 comments
Sozialminister
Sozialminister

This sucks. Elop sold Nokia to Microsoft and now Nokia employees are losing their jobs while Elop gets millions of dollars each year from Microsoft, though he is the one that caused all that trouble for Nokia.


The world is full s***.

ECH71
ECH71

Worst CEO of Microsoft, ever.

tommynj
tommynj

Not a surprise. Almost every company in the world is doing this in order to make larger profits. It is just sad that people have to lose their jobs right now especially in this bad economy.

veryDERPY
veryDERPY

it is true their marketing is ASS at best...no other positions open at ms? 

fede018
fede018

Someone is going to commit suicide tonight and you're happy because people lost their job... stupid fanboys

neowarrior793
neowarrior793

i would probably sack most of my marketing team if they was the ones who did last years e3 presentation and adverts that allowed random people to take control of my console though a tv as well. 

neowarrior793
neowarrior793

well its still a bad thing and it still something that MS should be ridiculed for doing. look at all thoes faithful employees about to lose their jobs. 

catsimboy
catsimboy

Well if it's the marketers who decided that Xbox's message should be "TV TV TV TV Call of Duty Dog" I'm not going to be shedding any tears.

Master_Turismo
Master_Turismo

I knew once Microsoft bought Nokia it would be bad in the long run for some employees. 

rob19ny
rob19ny

And ignorant people only think its Sony having layoffs.

Aaronp2k
Aaronp2k

the evidence is piling up microsoft. when are you going to admit that you will never catch up to ps4, the xbox one having poor sales obviously is one of the main reasons this is happening. you may have sold your xbox one a lot faster than xbox 360 sold but you also have loads of xbox one on shelves which aren't being sold. this is a huge problem, companies are getting overstocked and if your xbox one's aren't selling then you wasted resources building them.

RicanV
RicanV moderator moderator

Sad news. Plenty of companies are now trimming down. The Xbox marketing team isn't that surprising. They were less than great and faced an uphill battle with all the terrible performances from a select few individuals (Orth, etc. )

atopp399
atopp399

They'll probably re-hire a bunch of Indians using work Visas and pay them $10 an hour.

TimberWolf_CLT
TimberWolf_CLT

The marketing layoff selections should be easy enough, just look for the folks who still have their feet in their mouths.  To my mind it seems that MS ridding itself of folks who just don't seem to know when to shut up would be a good thing.

jmo

sakaixx
sakaixx

hope those guys get good compensation from MS, layoff is never a good thing for us employee :(

oflow
oflow

So many stupid Sony fanboy comments here. MS is not going bankrupt they are restructuring after a major acquisition.  If your companies hires on 30,000 people in a buyout, obviously some will get cut when they trim the fat.

You should be more worried about  Sony laying off 5,000 people earlier and spinning off dead weight pc & phone divisions, or banking heavily on 4K tvs as a plan.;

tommynj
tommynj

@veryDERPY Very true. Anyone on these forums could have done a better job marketing Xbox One.

TwinStripeUK
TwinStripeUK

@fede018 You kind of hope that what goes around, comes around for people like that, don't you?

tommynj
tommynj

@shinjuki It is called consolidating for a larger profit. MS will not be going out of business anytime soon unlike Sony.

RicanV
RicanV moderator moderator

@shinjuki Please don't make this into a console argument. 

RevLux
RevLux

@shinjuki  I'd imagine the differences are mute if you are the one losing your job.


Just saying.

_williamwallace
_williamwallace

Ignorant ppl can't tell the difference of why they are.

oflow
oflow

@Aaronp2k Your comment doesnt even make sense. So MS is supposed to just say, "Wel'll never catch the PS4" and then what?  Close XBox division all together? Not a realistic perspective. Using that logic American automakers should have all shut down because they are outsold by Toyota and Honda.

I'm sure the top people at MS arent happy not being #1, but too many people act like the X1 just isnt selling when it is. It would be different if the numbers were say 15 to 1, then you might have a point, but its more like 1.8 to 1 which is lopsided but not totally unrecoverable. You even said it yourself the X1 is currently outselling the numbers of the last gen consoles.  The truth is both consoles are actually doing well, PS4 is just doing a lot better.

Big Corporations restructure, outsource and lay people off all the time. The marketing people getting laid off has more to do with them  either going in a different direction with their marketing or them being excess labor from the marketing blitz that goes along with launching the console.

Its not a 'huge problem' considering Xbox isnt MS' main revenue stream, enterprise and commercial apps are.  MS posted record revenue for Q2 2014.

RicanV
RicanV moderator moderator

The only real part of Xbox that is affected is marketing. And with the way things were handled any change would probably be for the better.

oflow
oflow

@RicanV Has more to do with just the way big corporations are run in the post recession world.  Labor productivity is at an all-time high, but employee compensation has stagnated for 20 years, except on the executive level.  Corporations have been able to leverage the recession in their favor by telling people they are lucky to have any job as leverage instead of actually increasing pay since there are so many people out of work.

homey_d_clown
homey_d_clown

@RicanV 

Do you think that this has anything to do with next weeks financial report?

oflow
oflow

@TimberWolf_CLT i agree but unfortunately the people creating all the bad PR are executives, not the guys in the cubicles that will be getting laid off.

Went thru the same thing myself when I got laidoff from Dell in 2006 due to 'globalization'. 

RicanV
RicanV moderator moderator

Your point was completely derailed at : "you should be more worried about Sony"

Dcyple3000
Dcyple3000

@oflow so MS fires people its business strategy. Sony fire people its a Company Death sentence? and he called who fanboys? Really?

_williamwallace
_williamwallace

I wouldn't bother, that post is so irrelevant it's clear what his o purpose was.

RicanV
RicanV moderator moderator

If it does it has more to do with Nokia than anything. MS absorbed them and they still don't have a significant impact on the mobile phone industry. People are still choosing between Droid OS and iOS.

oflow
oflow

@RicanV Not really my reply was in response all the Sony drones posting comments like 'lolol MS going bankrupt becuz of X1'

oflow
oflow

@Dcyple3000 @oflow Theres a difference.  MS spent $7 Billion in the acquisition and brought on 30,000 people. They still had a net gain of employees. Sony has lost money 10 years in a row and laid off people because their divisions were losing money.  

Say what you want but MS is not hurting for money.  They could quit making the XBox right now and it wouldnt hurt them at all.

Can Sony say the same thing about Playstation?

Playstation and Sony Pictures are their only profitable divisions, and Sony Pictures just got out of the dog house in Q4 last year.

It wasnt a fanboy comment, it was directed to all the Sony fanboys derping in the comments here.

origkillmachine
origkillmachine

@Dcyple3000 @oflow One company is floundering, the other is flourishing. One company made a major aquisition and is eliminating customer service overlap, the other ... isn't.


I mean, you can spin this as "MS is doomed" all you want, but that's very clearly not the case. Ignorance is bliss I guess.

homey_d_clown
homey_d_clown

@Dcyple3000 @oflow 

We should start tracking fanboys, taggem and release.  This way when a stupid comment is made by them we can all just ignore them, just like women do.

tawilk34
tawilk34

@Dcyple3000 @tommynj @shinjuki there are many business articles that mentions sony's distress as a global business.  the PS department does not make up the company as a whole.  they are in trouble, and if not corrected could indeed go out of business.


MS's layoffs are due to restructuring and getting rid of redundant positions after a series of acquisitions.  it's a problem for some workers, but it's not a sign that MS is a bad situation.

mattress805
mattress805

I just got a nokia 521 windows phone. Worst piece of crap I've evr owned. It drops more calls than a 25$ Alcatel. FU Microsoft.

Dcyple3000
Dcyple3000

@oflow @Dcyple3000 Xbox and MS are seperate. so if Xbox goes under MS wouldn't care too since. so why would care to love xbox there not in it for your best interest at heart and the only reason for the 180s is because they got called out. you can post about a phone company MS bought but that does not excuse the Marketing division for the X1.

Dcyple3000
Dcyple3000

@origkillmachine @Dcyple3000 @oflow I said nothing about MS being doomed there in a bad place perception based but not financially, Sony complete opposite but not that bad financially as MS is publicly.

neowarrior793
neowarrior793

@shinjuki @Stogin @neowarrior793 i like how much you make yourself look even more pathetic then the last time i see you post anything. you claim social etiquette and the first thing you do is try and insult someone by somehow discriminating someone for their age which would still have nothing to do with anything.

you then go on to post about how you shouldn't belittle someone when you then belittle that person your trying to prove the point to? if you wanna be a tr0ll at least be a smart one that gets an actaul point across or if your "trying" to be serious at least put a little thought into your answers without being the hypocrite before you even finish your sentences. 

last but not least any job cuts for any business thats only do it because they think they should, should be ridiculed, thers plenty of thing MS could get these people to do to benefit the company, they aren't low on cash. cutting jobs should be the last thing to do not the first thing for any business.

Warlord_Irochi
Warlord_Irochi

@shinjuki "Who taught you social etiquette friend? You just jump online and start demeaning people? Start attacking people.. Does it make your small balled little ego feel a little good, does it? You've nothing to say other than childish insults. You're a juvenile, unintelligent, little punk."

Third time you post this, third time you describe yourself. xD

Stogin
Stogin

@shinjuki @Stogin @neowarrior793 Really? Since you just jumped on that guy and insulted him, and because every single post I've seen from you is some garbage hate on Sony for no reason other than you're a fanboy.  The f*ck is wrong with you?  No one in a Sony article cares about anything you have to say, so go to your X1 article, fanboy.

RicanV
RicanV moderator moderator

@mattress805 Some people like it. To each their own. I could never get into the whole tile business.

oflow
oflow

@Dcyple3000 @oflow @RicanV or fighting fire with fire depends on how you look at it.  BTW pigs dont stink the pens do. Worked on a pig farm in the ag dept in college for my work study job. :P

oflow
oflow

@Dcyple3000 @oflow No they arent.  Bill Gates commented on favoring spinning the company off but its not seperate.

homey_d_clown
homey_d_clown

@oflow @homey_d_clown @Dcyple3000 

To be called a fanboy by an MS Knob Gobbler is actually funny.

I own all current consoles and PC which makes me a gamer.

Bringing women into the conversation is exactly what I want to do, cause I like women. 

Stop Embarrasing yourself!!

oflow
oflow

@homey_d_clown @oflow @Dcyple3000 I own all current consoles and a gaming PC...yeah I bet thats pulls em in. lol 

Only a dork would try to bring pulling women into a debate about gaming.

You have no game with consoles or women.

neowarrior793
neowarrior793

@shinjuki @neowarrior793 @Stogin " juvenile little dummy" yea YOU'RE SO grown up, you must feel like a BIG KID saying words like THAT #sarcasm. it shows how stupid you are when your comeback is "this is what you sign up for", you really think MS can afford retraining people if they sack people whenever they like? you really think that theres someone out there that has the skills and knowledge of the software that MS uses? forget about the nokia people and focus on thoes marketing people who have worked there for a long time and acquired many skills, if MS needs to get more staff the replacements will most likly not have the skills the previous people had and must learn them on the job.

a good company with smart executives, managers etc knows how to use people to their strengths and improve upon the company, simply firing people is not only a risk to the company (due to the loss of skills and costs for future growth) but a lazy answer to a problem.

of course this is you @shinjuki, simply a self centered child who can't fathom thoes employees who now have no livelihood. your a REAL understander of people #sarcasm.