Microsoft To Cut An Addition 2850 Employees

Deep in Microsoft’s 10Q filing, the company has stated that they plan to cut an additional 2850 employees to the previously announced 1850 layoffs announced in May of 2016.  The company expects these cuts to be complete by the end of fiscal year 2017 (June 2017).

Microsoft does not state explicitly where the headcount reductions will occur but that they are in its mobile phone segment; the cuts will impact offices around the globe.

Considering that Microsoft’s head-count has grown significantly via acquisitions (among the largest was the mobile assets from Nokia) and they will be adding more in the future with LinkedIn coming-onboard, these types of cuts are not all that uncommon. Seeing as the company has been ramping down its ambitions in the mobile segment, it’s not too surprising that this is the business org being impacted by these cuts.

No matter how many or where they occur, headcount reduction is never an easy process for all parties involved. Microsoft will likely offer a severance package to those impacted and more importantly, they need to make the cuts quickly. Layoffs always bring down the moral of any company and the longer the process takes, the more internal damage it can create while employees wait to find out if they are now out of a job.

Thanks for the tip Matt!