According to people familiar with the company’s plans, Software giant Microsoft is mulling over major job cuts across its various sections.
But,
plans for job cuts have not yet been announced, and the company
(Microsoft) could end up discovering suitable methods in order to cover
up costs.
A Microsoft representative declined to comment on hearsays related to job cuts.
During
recent weeks, it had also been rumored that the figure of potential job
cuts is expected to be far less than the 15,000 positions.
The sources also said that the company might declare layoffs while announcing its quarterly earnings by the coming week.
Microsoft would declare its second-quarter results for the fiscal year 2008-09 on January 22.
At the end of July-September (2008) quarter, Microsoft had around 91,000 employees on its payrolls.
In
his report for the institutional investors of Microsoft, Brokerage firm
Oppenheimer & Co’s analyst Brad Reback, during the last month
(December 2008), stated that slashing the staff by 10% would boost up
company’s earnings per share (EPS) by about 10%.
He also said that such layoff exercise would be a profitable move for the company.
In October, the company had started a hiring freeze on a few of its divisions such as entertainment and devices businesses.
Moreover,
there have also been some unofficial reports on blogs that Microsoft
would announce some major layoffs by January 2009.
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