Microsoft workers brace for possible reorganization

Some Microsoft workers were bracing for news of a possible reorganization that could be communicated internally today.

A Microsoft spokesman declined to comment, consistent with the company's handling of persistent rumors swirling around plans for cutting costs to account for deteriorating economic conditions. One rumor pegged today as the date of a possible announcement.

At its quarterly earnings report in October, Microsoft announced plans to trim $400 million to $500 million in operating expenses in the current fiscal year through slower hiring, reduced capital spending and cuts to travel budgets and vendor services.

The Wall Street Journal reported Wednesday that Microsoft is "seriously exploring significant work force reductions" that could be announced during its fiscal second-quarter earnings report next Thursday. The story also suggested cutback plans remain in flux.

Employees in some groups were anxiously expecting an internal announcement of organizational changes, one said Wednesday. This person asked not to be named while discussing internal matters.

The scope of any potential reorganization, and whether it would include project cancellations or job cuts, was unclear.

Benjamin J. Romano: 206-464-2149 or bromano@seattletimes.com