February 2, 2012
Microsoft Announces Layoffs
Microsoft Corp. said on Wednesday that it had laid off some 200 employees as part of a major restructuring aimed at eliminating redundancies in its marketing division, the Associated Press reported.
In a statement, Redmond, Washington-based Microsoft said its layoffs were part of the company´s efforts to improve the effectiveness and efficiency of its marketing operations.
"Some of these changes involved the reduction of a small percentage of marketing positions to better align our resources with our business needs and clarify roles across the marketing function," the company said.
ABC´s Seattle-based station KOMO reported on Wednesday that Microsoft is expected to announce plans to reduce 60 of its divisions down to seven, with layoffs numbering in the hundreds.
The software giant has been under increasing pressure from investors to improve performance.
Last month, Microsoft posted a five percent revenue increase and flat earnings for the final quarter of 2011, with sales of servers, Xbox games and its Office productivity software showing growth.
The company is expected to release a number of new products this year, including smartphones, computers and its new Windows 8 operating system.
Shares of Microsoft´s stock rose 36 cents on Wednesday, closing at $29.89 in regular trading. The stock added 6 cents to $29.95 in extended trading.
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