In an article by PaidContent, it was announced that the third and final round of cuts has been completed by Microsoft. If the numbers are completely accurate, Microsoft exceeded their original estimate of cutting 5000 employees in 2009. The first two stages consisted of roughly 4,600 layoffs, around 1,400 in January and another 3,000 or more in May. While a company spokeswoman says that they have completed adjustment right now, Microsoft is “continuing to manage our businesses closely” in the current economy, which “can mean additional headcount adjustments.” According to Joystiq, the employees come from Games for Windows Live, Rare, and Massive, among other departments.
Here is the full statement from Microsoft: “Earlier this year, we announced that in order to reduce costs, increase efficiency and prioritize our focus areas, we would eliminate approximately 5,000 positions by June 2010. Today, we are eliminating around 800 positions spread across multiple businesses and locations and have completed our reduction plan sooner than we had anticipated 11 months ago. At the same time, we continue to hire in priority areas, but also understand that continuing to manage our businesses closely, as we always do, can mean additional headcount adjustments.”
Hopefully, the economic situation at Microsoft has stabilized enough that the remaining employees can breathe easier and the company can rectify their declining profit margins.
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