Microsoft Lays Off 200 in Reorganization of Marketing Unit

(Dow Jones) - Microsoft Corp. laid off roughly 200 employees Wednesday as the software giant restructured its marketing operations in an effort to streamline job responsibilities and eliminate duplications.

Microsoft said the layoffs were prompted by overlapping responsibilities of the Redmond, Wash., company's central marketing team and its various business divisions, which also conduct marketing activities. The move will rationalize and define job responsibilities, a company spokesman said.

"We're taking steps to improve the effectiveness and efficiency of our marketing, and to strengthen career paths for marketers at Microsoft," a company spokesman said in a statement. The changes "better align our resources with our business needs and clarify roles across the marketing function."

The layoffs, which affect a small portion of the company's marketing work force, come nearly a year into the tenure of Chris Capossela, who became chief marketing officer last spring. Capossela, a 20-year veteran of Microsoft, previously served as senior vice president of the Office business, responsible for marketing business-to-business products such as Office and Visio.

The changes come amid a sharp change in the way customers purchase technology. In midday trading, Microsoft shares were up 1.6 percent at $29.99.

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