Microsoft (MSFT) Cutting Ad Jobs; Is It the Wrong Time?
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Price: $390.49 +1.62%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.9%
Revenue Growth %: +14.7%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.9%
Revenue Growth %: +14.7%
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Its like a "double rainbow" of job cuts: what does it mean?
According to reports out Thursday, Microsoft (Nasdaq: MSFT) affirmed it cut advertising and marketing positions, though specific numbers weren't given.
Given that Microsoft cut 200 sales and marketing positions earlier in the year as part of a broader layoff, the impact might not be much on the surface. However, with the recent $6.2 billion accounting charge tied to the aQuantive acquisition, the cuts might be a hint to broader troubles in it Internet (Online Services) unit.
On behalf of the company, a Microsoft spokesperson commented to the WSJ, "I can assure you we're thinking about the exciting new opportunities that Windows 8, Xbox and Skype present for our advertising and marketing partners."
Thing is, all of the above mentioned products will be very Internet-heavy, including, but not limited to, the Microsoft Live network, which will be key for the Company when the next iteration of its gaming console is released. With the Xbox being as popular as it is, that is a potential lost opportunity if Microsoft can't get its Internet ad division together.
Whether or not the advertising and marketing ad segments were simply overstaffed is another question entirely.
Shares of Microsoft are indicated for a lower open.
According to reports out Thursday, Microsoft (Nasdaq: MSFT) affirmed it cut advertising and marketing positions, though specific numbers weren't given.
Given that Microsoft cut 200 sales and marketing positions earlier in the year as part of a broader layoff, the impact might not be much on the surface. However, with the recent $6.2 billion accounting charge tied to the aQuantive acquisition, the cuts might be a hint to broader troubles in it Internet (Online Services) unit.
On behalf of the company, a Microsoft spokesperson commented to the WSJ, "I can assure you we're thinking about the exciting new opportunities that Windows 8, Xbox and Skype present for our advertising and marketing partners."
Thing is, all of the above mentioned products will be very Internet-heavy, including, but not limited to, the Microsoft Live network, which will be key for the Company when the next iteration of its gaming console is released. With the Xbox being as popular as it is, that is a potential lost opportunity if Microsoft can't get its Internet ad division together.
Whether or not the advertising and marketing ad segments were simply overstaffed is another question entirely.
Shares of Microsoft are indicated for a lower open.
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