Microsoft is laying off dozens of contract and freelance writers from its MSN news and entertainment portal as the giant software company seeks to reshape itself as a devices and services company.
A spokesperson for the company confirmed the layoffs but declined to specify the number or comment further. A person familiar with the situation said the cuts could affect more than 100 people in all.
The pruning of MSN writers, who contribute end edit columns, blogs and features to the site, comes just two months after Microsoft chief executive Steve Ballmer announced a radical reorganisation of the company, which is only now starting to take effect.
Microsoft’s online services unit, chiefly consisting of the Bing search engine and MSN portal, is in line for a shake-up as it has never been profitable and has lost almost US$3 billion in the last two years alone. Some investors have pressed for a sale of the unit.
MSN was merged with Bing Apps, which also produces news, weather and other content, in the July reorganisation under new head Brian MacDonald.
While MSN is cutting its contractor budget, it is also planning to increase spending on full-time employees, MacDonald told the Seattle Times and later confirmed to Reuters, without giving any further details.