More Microsoft Layoff Rumors Abound

It would appear that the Microsoft layoffs we first discussed in this post back on 12/22 maybe coming to fruition.

In fact, rumor has it Microsoft may cut as much as 17 percent of its work force (a total of about 15,000 people) within the next 2 weeks, according to Fudzilla.

Among the departments likely to be affected…MSN, and Microsoft offices in Europe, the Middle East and Africa. While “the targeted areas do make sense,” a 17 percent cut doesn’t seem very probable, Silicon Alley Insider contests.

“There is no reason for the company to suddenly cut this much cost,” Alley Insider wrote. “Microsoft’s margins are still fine, and much of its revenue is generated from multi-year contracts (and is therefore unlikely to see a massive intra-quarter hit).”

Significant cuts could take place in the event of a restructuring but, even then, a 17 percent cut sounds extreme, they added.

The layoffs are expected to occur around January 15, which is 1 week prior to the January 22nd release of Microsoft’s Q2 earnings report.

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