Microsoft Corporation MSFT has reportedly denied that it plans to lay off thousands of staff in its engineering and human resources departments.
What Happened: The denial was made in an email to Gizmodo, with a Microsoft spokesperson calling reports of the impending layoffs a “rumor.”
“Like all companies, we evaluate our business priorities on a regular basis, and make structural adjustments accordingly,” said the spokesperson, reported Gizmodo.
Microsoft did not immediately respond to Benzinga’s request for comment on the development.
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Why It Matters: The tech giant employs more than 200,000 workers, and according to earlier reports, was planning to cut 11,000 positions or 5% of its workforce.
Microsoft was reportedly expected to cut one-third of its recruiting staff and put a freeze on hiring and not carry out normal hiring for one or two years.
The layoffs, which would affect several engineering divisions as well, were reported to take place Wednesday.
Price Action: On Tuesday, Microsoft shares closed 0.5% higher at $240.35 in the regular session and fell 0.45% in the after-hours trading, according to data from Benzinga Pro.
Image and article originally from www.benzinga.com. Read the original article here.