According to a Bloomberg news report that references sources familiar with the company’s plans, Microsoft (MSFT) is preparing for its largest round of job cuts in five years, as the software giant pushes ahead with integrating and streamlining Nokia’s Devices and Services unit.
This means that Microsoft’s job cuts, which could be unveiled as soon as this week and may end up being the biggest in the company’s history, would top the 5,800 jobs that were slashed in 2009, according to the report. The lay-off will encompass employees who work in overlapping Nokia-Microsoft divisions, as well as other positions that already exist within Microsoft, B’berg cites its sources as saying.
Last week, Microsoft CEO Satya Nadella sent a memo to his employees where he promised to “increase the fluidity of information and ideas by taking actions to flatten the organization and develop leaner business processes“.
In his memo Nadella didn’t specifically comment on the possibility of layoffs at the software company, but said “nothing is off the table” and that he would address detailed organizational issues when Microsoft reports quarterly earnings results on July 22.
The Bloomberg report seems to be in line with Nomura’s Rick Sherlund who predicts that the Redmond, Wa.-based firm will reduce its headcount by something in the range of 5% to 10%. The company says it now has 127,104 employees, as of early June, after adding about 30,000 in its $7.2 billion acquisition of Nokia’s handset unit back in April.
Microsoft shares rose 0.62% to $42.40 pre-market, after closing at $42.14 in the previous session.