Microsoft to cut thousands of jobs - but impact on Irish staff 'will be minimal'

TECH GIANT MICROSOFT is planning to cut jobs worldwide – with one US outlet reporting as many as 3,000 jobs are to go at the company.

However, sources here have told TheJournal.ie that the effect on Irish jobs will be minimal - writes thejournal.ie.

Earlier this year Microsoft announced that it is to create 600 jobs as part of a major investment in Ireland bringing its Dublin-based workforce up to 1,800.

Microsoft said yesterday it would cut an unspecified number of jobs amid reports that US tech giant was reorganising its global sales operations.

“Today, we are taking steps to notify some employees that their jobs are under consideration or that their positions will be eliminated,” Microsoft told AFP.

Earlier, CNBC television said the company would be cutting some 3,000 positions, mostly from its non-US sales staff.

A Microsoft spokesperson would not respond to queries on how many jobs would be affected here. However, TheJournal.ie understands that the impact on Irish-based staff will be minimal.

The layoffs come as the US software giant refocuses its sales force on making Microsoft a pivotal part of businesses relying on cloud computing.

“Like all companies, we evaluate our business on a regular basis. This can result in increased investment in some places and, from time-to-time, re-deployment in other,” the company said in a statement.

Microsoft had more than 121,000 employees worldwide at the end of March, according to its website.

Additional staff in Ireland

Microsoft announced in February that it is to create 600 jobs as part of its investment here. The company immediately started hiring 500 people at its newly established EMEA Inside Sales Centre in Dublin.

The further 100 jobs were scheduled to be added to existing finance, operations, engineering and sales departments. These figures would bring the number of Microsoft staff in Dublin up to 1,800.

Microsoft Ireland is also set to move into a new campus in Leopardstown before the end of the year, in a €134 million investment in the company.

Tech overhaul

Global Equities research analyst Trip Chowdhry said layoffs such as those taking place at Microsoft as symptoms of a technology industry undergoing a “major overhaul” caused by a shift to computing and online services being hosted in the internet cloud.

“At companies transitioning from the old world to the new world you will see layoffs accelerate; it’s a slow and gradual and painful experience for them.”

Microsoft has been shifting to a cloud-based model under Nadella, as the industry moves away from packaged software that once was the core of its business.

The tech company said revenue from its “Intelligent Cloud” rose 11% from a year earlier to $6.8 billion.

It is to release its earnings for the recently ended quarter on 20 July.

Microsoft cut 7,800 jobs in 2015, and 4,700 last year.

- With reporting by AFP

Read other news on the city site of Dublin.

thejournal
Microsoft Dublin
If you notice an error, highlight the text you want and press Ctrl + Enter to report it to the editor
I recommend
No recommendations yet

Comments

Comments are designed to communicate and discuss the features of an enterprise or event, as well as to find out the interesting questions on it.

Society
It was a double act in the Pepper household as twins Aidan and Kate collected their Leaving Cert results. Aidan notched up an impressive 602 points which included five H1s at Pobalscoil Neasáin, Baldoyle, Dublin. He is hoping to go on to study medicine, while his twin sister is hoping to go on to social work in Blanchardstown IT. "I'm hoping Monday will go my way, I already have my HPAT results from earlier in the year," said Aidan. Meanwhile, Kate scored...
Society
The former 'Dragons' Den' entrepreneur Sean O'Sullivan made more than €30m from an initial €1m bet on a bike-sharing company that has been sold to Uber for close to €200m. O'Sullivan, whose SOSV venture fund is one of the most active in the world in financing early-stage startups, took an early punt on Jump Bikes in 2014, supplying most of the company's €1m startup capital. It took part in a second €8m funding round in January this year with eight other in...
Society
The number of Leaving Certificate candidates scoring high points for college entry has jumped since the changes to the exam grading system and CAO points scale. Figures from the CAO show that 11.9pc of students achieved between 500 to 599 points this year, compared with 9.6pc in 2016. There are also other candidates with 600 points, and even more if they have the 'honours' maths bonus. The total proportion of students with 500 or more is 13.2pc this year,...
Society
A MAN in his 20s has died and a teenage girl is seriously injured in hospital after a car left the road and ended up in a field last night. The crash happened sometime between 10pm and 11.20pm on a rural road in Westmeath - writes independent.ie Gardai in Mullingar are investigating the single vehicle road traffic collision on the Castlepollard to Collinstown Rd R395 on Wednesday. "The collision occurred at Deerpark, Bratty - approximately 1.5 miles from C...
Society
More than 57,000 students have receivedthe results of their Leaving Certificate exams at their schools. This is the second year that sees candidates measured according to a new marking structure, with a smaller number of numerical grades replacing the old alphabetical system - writes rte.ie According to the State Examinations Commission, seven students achieved Higher Level Grade 1's in eight subjects this year. It said that last year, eight students achie...
Incidents
A 27-year-man has died following a road crash near Mullingar in Co Westmeath last night. The man was injured after the car he was travelling in hit a ditch and ended up in a field at Deerpark, around 2.5km from Castlepollard, some time between 10pm and 11.20pm. He was taken to the Midlands Regional Hospital inMullingar, where he was later pronounced dead. An 18-year-old woman, who was also in the car, was taken to the same hospital. Her condition is descri...
Society
A Medical Council inspection of nine hospitals has found that some interns were asked to perform duties above their grade. It says some trainees at Galway University Hospital alleged they were also left unsupervisedwhen a consultant was absent for a week. However, the report says that the hospital was complying with required criteria and the trainees knew who their clinical supervisors were. At other hospitals, the council found thatmedical registrars refu...
Society
A study by the Simon Communities has found a severe shortage of properties for people who rent using Rent Supplement and Housing Assistant Payment (HAP) payments. The charity saidincreases in rent payment limits introduced in 2016 were no longer effective - writes rte.ie The study, carried out in May, found that just 8% of properties available to rent were within the Rent Supplement and HAP limits. It also showedthat in eight out of the 11 areas examined,...
Society
An Post is to seek up to 300 voluntary redundancies in a cost-cutting plan that may also see it move its headquarters from Dublin's historic GPO. The organisation said its voluntary severance programme will be open to 1,200 of its corporate and support office workers, around 950 of whom are currently based in the GPO. An Post said that a recent change in work practices identified more than 250 roles that could be eliminated. As part of the change, the orga...