Still no word from Microsoft (MSFT) over rumoured layoffs this week ahead of Thursday earnings, but the company is talking up more cost-savings plans: Not only is Microsoft not looking for new office space, it’s shelving plans already in the works to expand existing facilities.
Seattle P-I: Microsoft is set to delay the construction of all new buildings in Redmond, except one, for at least three years. The company also will not renew most of its leases when they come up for renewal this year and next….
[P]ostponing most further construction in Redmond and not renewing some leases, Microsoft could save about $82 million in capital expenditures during the remainder of its current fiscal year, which ends June 30. Next fiscal year, Microsoft could save about $525 million from what it had initially budgeted…
Here’s one thing we can infer from the move: Microsoft sees its headcount flat for 2 to 3 years:
[I]n December, Microsoft’s Real Estate and Facilities Team developed a scenario to estimate the company’s real estate needs under the assumption that the company’s work force would not grow for the next 2 1/2 years. Beyond then, the planners expected annual growth of 3 per cent.
Last year, Microsoft increased the size of its work force by 16 per cent. The company employs more than 94,000 people worldwide, including 40,000 in the Puget Sound region.