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Microsoft Continues Layoffs, Massive Affected

Microsoft Continues Layoffs, Massive Affected Exclusive

May 6, 2009 | By Leigh Alexander

Microsoft's company-wide headcount reduction plan saw some heavy implementation yesterday, although the company declined to break out layoffs across divisions.

Anonymous sources told Gamasutra that Massive, Microsoft's in-game ad business, saw up to 75 percent of its staff laid off[*]; a report in VentureBeat cites the same figure, and estimates this equates to about 100 employees -- out of some 3,000 reduced yesterday.

"As part of the plan we announced in January to reduce costs and increase efficiencies, today we are eliminating additional positions across several areas of the company," a Microsoft spokesperson confirmed to Gamasutra late yesterday evening. "Microsoft is not breaking out layoff figures by divisions," added the rep.

In January, Microsoft said it would cut a total 5,000 jobs, or five percent of its total workforce, over the coming 18-month period "in the areas of R&D, marketing, sales, finance, [legal], HR, and IT" in order to reduce costs. 1,500 of those layoffs were made on the same day as the initial announcement, and included the closure of Flight Sim developer ACES Studio.

"While job eliminations are always difficult, we are taking these necessary actions in response to the global economic downturn," the rep told us.

UPDATE: A Microsoft rep clarified that the Massive layoffs constitute about 28 percent of staff, and that the company remains "committed to growing the business."

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