The sources told Bloomberg the layoffs will "probably" be in Nokia and overlapping Microsoft divisions, but also in marketing and engineering divisions. The sources said that included marketing departments for divisions such as the global Xbox team, potentially including the UK-based European group.
"People with knowledge of the company's plans" said Microsoft is looking to trim its 127,000-strong employee base following the April acquisition of Nokia, which brought in 30,000 staff to the company. Two of the people said details of the restructuring are still being formulated, while Bloomberg notes the job cuts could occur "as soon as this week." Microsoft has yet to confirm or deny any of Bloomberg's information, and the publication noted a Microsoft spokesperson declined to comment on it.
When we approached Microsoft about Bloomberg's report, a spokesperson said, "Microsoft does not comment on rumor or speculation."
CEO Satya Nadella also declined to discuss possible job cuts when Bloomberg interviewed him following his recent open letter to employees. In the letter, Nadella described the need for "significant" changes to engineering and organization within the company.
The recently appointed CEO said he'll elaborate on those changes when the company publishes its Q4 earnings report on July 22. As for Xbox, Nadella reaffirmed the company's commitment to its gaming division, while pointing to its value in a "mobile-first world."
"While today many people define mobile by devices, Microsoft defines it by experiences," Nadella said. "We're really in the infant stages of the mobile-first world. In the next few years we will see many more new categories evolve and experiences emerge that span a variety of devices of all screen sizes. Microsoft will be on the forefront of this innovation with a particular focus on dual users and their needs across work and life."