Microsoft is expected to conduct yet another round of layoffs next week when the company reports its quarterly earnings on Thursday, January 26. According to Business Insider, the company is planning on cutting 700 jobs.
The cuts, according to CNBC, will not be concentrated in one particular area, but are part of an effort to update skills across the company. In June, Microsoft reportedly had more than 114,000 employees with more than 1,000 open positions ready to fill.
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CNBC reports that the company is amid a years-long transition to a cloud model, where customers are required to buy software subscription services. During this transition, Microsoft has laid off more than 25,000 workers.
The layoff is a part of Microsoft’s previously announced plan to cut 2,850 jobs by June 2017 – which is the end of Microsoft’s 2017 fiscal year.
According to an inside source, most of the 2,850 roles scheduled to be cut have already been terminated.
Last September, Microsoft shut down Skype’s London offices. According to FT, Microsoft said it had “made the decision to unify some engineering positions, potentially putting at risk a number of globally focused Skype and Yammer roles.”
“We are deeply committed to doing everything we can to help those impacted through the process,” the statement read.
The online communications service, which was originally founded in 2003 in London, was acquired by Microsoft in 2011 for $8.5bn.
“This is disappointing. Skype is one of Europe’s iconic technology businesses and a genuine ‘unicorn’ with an amazing pedigree of innovation and talent,” Russ Shaw, founder of industry group Tech London Advocates and previously vice-president of Skype Emea, who left when the company was sold to Microsoft told FT.“While London is working hard to build a strong base of world-class technology businesses, this decision is a step in the wrong direction.”
Former employees commented on the move, saying they were unsurprised given that several Skype executives had been quietly departing over the past three years. “I know it’s natural to integrate, but Skype is a shell of the company it once was,” a former employee told FT.
“One of the things that was always a big issue for Microsoft was that big decisions at Skype would usually always be made in Europe, not in Redmond. Now, it’s a Redmond, Microsoft-led company rather than an independent Skype.”
“I found it unusual that while I was employed there, over a very short time span any manager that was originally a Skype manager was replaced by a Microsoft manager. And I mean every single manager with a connection to the original company either left or was replaced,” Dan Wellman, another former employee, wrote on the Quora site in April.
Microsoft Admits Windows 10 Has Serious Flaws
Earlier this week Terry Meyerson, Microsoft’s Executive Vice President of the Windows and Devices Group, wrote a blog post echoing the words of many, detailing the issues related with Windows 10.
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“Many of you have asked for more control over your data, a greater understanding of how data is collected, and the benefits this brings for a more personalized experience. Based on your feedback, we are launching two new experiences to help ensure you are in control of your privacy,” Meyerson wrote.
The “two new experiences” Meyerson refers to can be broken down into the following:
- The Microsoft Privacy Dashboard
Microsoft will now provide concise information on your search history, browsing history, location activity, and Cortana’s Notebook when users sign in with their Microsoft account and visit account.microsoft.com/privacy.
The new layout is designed to give users more control over their data.
- Privacy Improvements in the Creators Update
The “new and improved Windows 10” will be called “Windows 10 Creator Update” and will include a new install/update screen and simplified diagnostic data – “basic” and “full.” Basic will only have “data that is vital to the operation of Windows.” Microsoft claims this data is central to “keep Windows and apps secure, up-to-date, and running properly.”
[Feature Image by Stephen Brashear/Getty Images]