Redundancies on the way at Microsoft?

'At least' ten per cent of jobs could go, say sources
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Microsoft could be considering a plan for 'substantial redundancies', reports The Independent.

Citing rumours on Silicon Valley website Fudzilla, the paper suggests that the software giant may look to cut between 10 and 17 per cent of its workforce - possibly affecting up to 15,000 jobs worldwide - and that overseas divisions 'could be particularly hard hit'.

The cut - which it's estimated could save the firm over £800 million a year - would be the result of predicted disappointing results for December, due to be announced within the next two weeks. Cutbacks in corporate spending are leading some to predict that Microsoft may lose Office licences in 2009, while the sharp downturn in online advertising could also spell trouble for its MSN internet business.

Speaking to our sister magazine MCV, Microsoft said: “We do not comment on rumour and speculation.”