Microsoft halts construction plans, won't renew leases
Huffs, puffs, blows house down
Microsoft is reportedly boarding up a number of its Seattle-based properties by not renewing the leases, and is postponing construction plans on a number of buildings to help cut costs.
According to SeattlePI.com, when Microsoft reports its second quarter earnings on Thursday, the software giant will bring in a series of belt-tightening measures that will affect expansion plans for facilities across the Puget Sound region.
Redmond is understood to be delaying construction of all new buildings in Seattle, with the exception of one, for at least three years. Meanwhile, leases up for renewal this year and in 2010 will simply be dropped by Microsoft.
El Reg has asked Microsoft if it can confirm the accuracy of Seattle PI’s report, but the firm was not immediately available at time of writing.
Rumours have been circulating for the best part of a week that suggest Microsoft could also be mulling culling some jobs at the firm where it currently has a headcount of around 91,000 staff.
However, there's still no official word from MS on whether it plans to cut back that deep. ®