Microsoft readying massive job cuts?

 

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By Stuart Turton

Posted on 2 Jan 2009 at 09:50

Microsoft is reportedly preparing massive job cuts as it faces up to the global economic crisis.

The report comes through website Fudzilla, which claims Microsoft has informed its staff that it will be axing around 15,000 jobs, representing around 17% of the company's 90,000-strong global workforce.

The website claims the announcement will come on 15 January, with MSN and Microsoft EMEA poised to bear the brunt of the sackings. However, the report has been met with scepticism by noted Wall Street Analyst and blogger, Henry Blodget.

"A cut of this magnitude seems highly unlikely, although the targeted areas do make sense," he writes. "Unless Microsoft's business has been absolutely crushed in the past two months, there is no reason for the company to suddenly cut this much cost. The only way we could see Microsoft laying off this many people is if the company decided to eliminate business units."

Microsoft says it "does not respond to rumour and speculation".