Microsoft - no redundancies following Yahoo deal

Microsoft has announced that it will not make any job cuts if it is successful in its unsolicited $28.66-per-share bid to gain control of Yahoo.

Kevin Johnson, president of Microsoft’s platforms and services division, said in an e-mail to employees in his unit that the company would dedicate ‘significant rewards and compensation’ to retain Yahoo and Microsoft employees.

Mr Johnson added while some overlap is expected in any combination of this size, we should remember that Microsoft is a growth company that has employed more than 20,000 people since 2005. We would look to place talented employees throughout the company as a whole. We have no shortage of business and technical opportunities and we need great people to focus on them, added Mr Johnson.

Last week, Yahoo sent a letter to shareholders arguing that Microsoft’s bid, originally valued at $31 per share, undervalued the group but the company’s choices are believed to dwindling fast.

According to sources, those options include a possible combination with News Corp, the media group owned by Rupert Murdoch, in which Yahoo would gain the social networking site MySpace and News Corp would take a 20% in Yahoo.

Mr Johnson concluded that Yahoo would bring a Web-centric view, media expertise and advertising talent to Microsoft who said it plans to maintain Yahoo’s presence in Silicon Valley if the deal goes ahead.

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