Cutting costs, Microsoft backs away from office space

Because of the deteriorating economy, Microsoft has halted negotiations over a new office building in downtown Seattle.

Microsoft has discontinued negotiations over leasing a new office building in Seattle due to the deteriorating economic situation, it said.

The company was originally interested in the building not for new employees but to help alleviate crowding on its suburban campus and to help consolidate business groups, said Lou Gellos, a Microsoft spokesman. The building, still under construction, will have 300,000 square feet of office space.

The decision against pursuing the building downtown is in keeping with recent decisions to cut costs at the company. In November, CEO Steve Ballmer said that the company was closely examining all aspects of the business in an effort to reduce costs, including slowing growth in new hiring.

The change of plans also follows recent rumors, which the company has declined to comment on, of impending layoffs.

Microsoft hadn't yet identified which workers would have moved into the building had the lease been completed, Gellos said.

Without the new building, Microsoft has "one less option" for consolidating groups and alleviating congestion, he said.

Microsoft's expansion in Seattle is relatively new. It now has a handful of locations in the city, including one where any employee can use a desk for a day or an afternoon.

The company is continuing to complete several other planned expansions announced several years ago, including new buildings in Bellevue and Redmond, near its corporate campus, Gellos said.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags global recession

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Nancy Gohring

IDG News Service
Show Comments

Father’s Day Gift Guide

Brand Post

PC World Evaluation Team Review - MSI GT75 TITAN

"I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it."

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?