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Microserfs Face The Ax

Having recently been surpassed by Apple (in terms of market capitalization), and still lacking a find a viable mobile strategy, Microsoft is not with without its challenges. It's perhaps not surprising, then, that the tech giant is reportedly preparing to announce a new round of layoffs as early as tomorrow.

Still, "The unconfirmed numbers we're hearing are relatively small in the scheme of things -- far less than the thousands of jobs cut by the company last year," reports TechFlash.com. What's more, "The move suggests the company is continuing to keep a tight rein on expenses, and its overall headcount, even as the tech industry emerges from the economic recession."

The cuts come at the beginning of a new fiscal year, which is a time when Microsoft has historically made adjustments in product teams in an effort to align them with new strategies. Furthermore, the company has recently returned to what TechFlash calls "growth mode, albeit modestly."

"The core business is actually pretty strong," VentureBeat says of Microsoft. "Windows 7 has taken off in the PC market, and overall PC unit sales are expected to grow 20 percent this year."

DigitalDaily's headline says it all: "Which Do You Prefer for the Press Release, Mr. Ballmer: Downsize, Rightsize, or Amoritize?"

As The Register notes: "In January 2009 Microsoft announced the first job cuts in its history when it said it would let go around 5,000 staff."

"There have been rumors circulating for months that Microsoft wasn't done with its plans for layoffs," reports ZDNet's Mary-Jo Foley.

"Speculation about where those cuts might fall has been all over the map. I've heard the Server and Tools Business (STB) mentioned by a few individuals, with no further details as to specific teams which might get trimmed."

Adds Foley: "One theory has Microsoft 'getting rid of long termers to make way for cheaper newbies' ... Again, I have no further information at this time to corroborate this."

Read the whole story at TechFlash et al. »

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