Microsoft said to have cut hundreds of jobs
Following job cuts announced in February, Microsoft has cut more positions, mostly in advertising sales and marketing.
Microsoft eliminated several hundred jobs, mostly in advertising sales and marketing, as part of a review of staff tied to the start of a new fiscal year, a person familiar with the matter said.
The company confirmed in a statement Wednesday that there were job cuts, but it didn't specify the magnitude. In addition to reductions in the advertising unit, a small number of jobs were trimmed in several other businesses, said the person, who asked not to be named because the details haven't been disclosed.
Microsoft, the world's largest software maker, has been working to control expenses as personal-computer sales have stagnated and its Internet-advertising business hasn't generated as much revenue as the company once expected. The lackluster online performance prompted the company to record a $6.2 billion writedown for the quarter that ended June 30.
The company also is facing higher costs in areas, such as marketing for its Windows 8 operating system, to be released in October, and selling more software as an Internet-based cloud service.
"Like any company, Microsoft continually evaluates its operations and works to align the business to key priorities," according to the emailed statement. The company is "thinking about the exciting new opportunities that Windows 8, Xbox and Skype present for our advertising and marketing partners."
Among the staff members who were notified that their jobs were cut was advertising evangelist Mel Carson, one of the public faces of Microsoft's ad business. Carson announced his firing on his personal blog and on Twitter.
Microsoft in February cut a small percentage of marketing positions after a review of that area that was designed to reduce overlap and help the company more nimbly respond to rivals.
The job cuts were reported Wednesday by the Search Engine Land website, which didn't specify a number.