Major Layoffs Coming To Microsoft
Thousands of Microsoft [http://www.microsoft.com] employees are facing layoffs as the company struggles to maintain profitability in an increasingly grim worldwide economic downturn.
Microsoft Office [http://www.independent.co.uk/news/business/news/microsoft-mulling-thousands-of-redundancies-1223054.html]. Profits at the company's MSN business is also under threat as the growth in advertising revenues has "decelerated sharply."
A ten percent reduction in employees could save the company $1.2 billion per year, but GamesIndustry [http://www.fudzilla.com/index.php?option=com_content&task=view&id=11142&Itemid=1] predicts that the profitable Entertainment and Devices division will likely emerge from the cuts largely unscathed.
"The prevailing wisdom on Microsoft is that the company may pre-announce disappointing December results," Oppenheimer & Co [http://www.opco.com/] analyst Brad Reback said. "Should such headcount reductions materialize, we would view them as a positive sign that management is interested in preserving the company's operating margin structure through the downturn."
The news comes in the wake of Reuters [http://www.escapistmagazine.com/news/view/88441-Rumors-Sony-to-Cut-Several-Divisions], "We don't have any such plan." Analysts, however, are saying the company's current plan to save $1.1 billion is inadequate to secure future growth.
Permalink
Thousands of Microsoft [http://www.microsoft.com] employees are facing layoffs as the company struggles to maintain profitability in an increasingly grim worldwide economic downturn.
Microsoft Office [http://www.independent.co.uk/news/business/news/microsoft-mulling-thousands-of-redundancies-1223054.html]. Profits at the company's MSN business is also under threat as the growth in advertising revenues has "decelerated sharply."
A ten percent reduction in employees could save the company $1.2 billion per year, but GamesIndustry [http://www.fudzilla.com/index.php?option=com_content&task=view&id=11142&Itemid=1] predicts that the profitable Entertainment and Devices division will likely emerge from the cuts largely unscathed.
"The prevailing wisdom on Microsoft is that the company may pre-announce disappointing December results," Oppenheimer & Co [http://www.opco.com/] analyst Brad Reback said. "Should such headcount reductions materialize, we would view them as a positive sign that management is interested in preserving the company's operating margin structure through the downturn."
The news comes in the wake of Reuters [http://www.escapistmagazine.com/news/view/88441-Rumors-Sony-to-Cut-Several-Divisions], "We don't have any such plan." Analysts, however, are saying the company's current plan to save $1.1 billion is inadequate to secure future growth.
Permalink
