Microsoft to axe several hundred employees

Despite its continued growth, Microsoft is reportedly laying off about 200 employees on Wednesday.

The move has been anticipated as the company overhauls its marketing operations under new Chief Marketing Officer Chris Capossela. There have been numerous reports Microsoft leaders are unhappy with the results from the billions of dollars spent on marketing each year.

“In a lot of ways, this is a key moment for Microsoft from a marketing perspective when you look at a lot of its product cycles,” says long-time Microsoft watcher Todd Bishop with Geekwire.com

Bishop says in addition to key product roll-outs this year, the company is facing new threats to core products like Windows and Office from Google and other competitors.

“You have the expected launch of Windows 8 later this year, Windows Phone trying to get back in the game, Xbox 360 attempting to really build on its momentum in the U.S. and do better worldwide,” Bishop says.

Microsoft has not yet confirmed the layoffs.