Microsoft Cuts Likely to Focus More on Buildings Than People

Illustration for article titled Microsoft Cuts Likely to Focus More on Buildings Than People

Still no word on when or if those rumored major cuts will be hitting Sony in the next month, but the Seattle Post-Intelligencer is reporting that Microsoft's cuts will be laid out later this week.

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The cuts will be detailed during the company's second-quarter earnings report on Thursday, the P-I reports, but no word yet how or if it might affect Microsoft's Entertainment and Devices Division, which includes the Xbox 360.

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The P-I did get their hands on a leaked presentation which seems to indicate the company is postponing plans to expand their facilities in Washington, including putting a stop to the expansion plans for the land Microsoft purchased from Nintendo.

It sounds like the company may see pretty big savings from these building cuts, so maybe no people will lose their jobs. Though I can't help but think that the shutting down of Microsoft's gaming blog, Gamerscore Blog, may have had something to do with cost cutting measures.

Microsoft expansion to take a hit to cut costs [Seattle P-I]

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DISCUSSION

This makes sense, especially since they're going to be getting a fairly significant quantity of new space online soon when the Studios East project is completed, and there are also two new buildings on the former Safeco campus going up (one under construction right now, and one that'll replace Zuneland at Building 87 with something a bit higher capacity than a one-story warehouse, and a bigger parking garage being built now.) As is, they previously accelerated what was supposed to be 15-20 years of new construction into 10, so throttling back a bit definitely makes sense.