Microsoft Undergoes Third Round of Layoffs

Microsoft Undergoes Third Round of Layoffs

Moving quickly to create a smaller, faster organization

Microsoft on Wednesday initiated its third and last major round of layoffs, cutting an additional 3,000 employees. The firm had revealed in July that it would cut 18,000 jobs during the fiscal year that started that month, and after cutting 13,000 positions in July, it cut a further 2,100 employees in September. A final and much smaller round of cuts is now expected in early 2015.

I was the first to report this round of layoffs, on Twitter. Microsoft later confirmed the move.

"We've taken another step that will complete almost all the 18,000 reductions announced in July," a Microsoft statement notes. "The reductions happening today are spread across many different business units, and many different countries."

I've also heard from several Microsofties who were impacted by this week's layoffs. As you might imagine, the stories are unpleasant, and sobering, and involve meetings with exit package-laden managers and HR representatives.

Mary Jo Foley reports that this round of cuts came largely from support staff in human resources, finance, sales and marketing and IT, though I've heard from some outside of those organizations as well.

The initial round of layoffs, in July, consisted largely of former Nokia employees who had bloated Microsoft's ranks when that firm's devices and services businesses were acquired back in April. The firm had over 125,000 employees at the time, and said that 12,500 of the 18,000 to be cut would come from the 25,000 that had come to Microsoft from Nokia.

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