Report: Microsoft Considering Job Cuts

By Chris Faylor, Jan 15, 2009 9:00am PST Microsoft may significantly reduce its work force as early as next week, according to a new report from The Wall Street Journal, citing sources familiar with the plans.

The plan is still under consideration and may not be enacted if Microsoft can find other means of cutting costs, the site cautions. Should the reduction take place, the sources indicate that the cuts will be "far less" than recent rumors have suggested.

Currently, Microsoft has over 91,000 employees worldwide. Earlier rumors had claimed that Microsoft could cut as much as 15,000 positions, or 16% of its work force.

How or if the possible layoffs would affect Microsoft's Entertainment & Devices Division--the branch responsible for the Xbox 360--was not specified.

Last week, Microsoft CEO Steve Ballmer admitted that economic conditions were forcing the company to think about cost-cutting measures, but declined to offer specifics.

Frequent rumors of significant layoffs have also beleaguered rival console maker Sony, following an earlier cost-reduction plan that saw the company axe 16,000 jobs.

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  • I don't think they'll cut that many full-time employees. They'll probably do their best to retain their personnel as when things get better it'll cost them more to replace the folks they cut in the long run with the training and also lost talent.

    My company I just left (resigned on Monday) said they're not going to cut jobs to everyone, it'll be hard to keep that word but they've already taken a bunch of measures to cut costs like less catered lunches and rearranging schedules to reduce overtime. Pretty sure MS will follow this route first and they can see how things stand in a few months.