LI Microsoft employees to lose jobs in restructuring

Microsoft told New York State it will lay Microsoft told New York State it will lay off 32 employees from its office, at 2929 Express Dr. North, Hauppauge in October. This is from July 21, 2014. Photo Credit: Heather Walsh

advertisement | advertise on newsday

Software developers in Hauppauge will be swept up in Microsoft Corp.'s plan to shed 18,000 jobs in a global restructuring, according to a government filing.

Thirty-two Long Island employees will be affected by the closing of the Microsoft office at 2929 Express Dr. North on Oct. 15, according to a notice filed with the New York State Department of Labor.

A Microsoft spokeswoman declined to answer questions and said that the contents of the filing would be the only information provided.

On Thursday, Microsoft, the world's largest software maker by revenue, announced the biggest layoffs in its history, including about 12,500 jobs related to its acquisition of Finnish mobile device maker Nokia Corp. announced in September. About 1,350 workers near Microsoft's Redmond, Washington, headquarters and 1,800 workers in Hungary also were notified.

Microsoft's software development operations on Long Island stem from its acquisition of East Northport security software maker Sybari Software Inc.

Sybari, founded by former New York City police officer Robert Wallace, filed for an initial public offering in May 2004 and listed 278 employees by September of that year. In February 2005, Microsoft announced it was acquiring Sybari, maker of the Antigen line of anti-virus products, scuttling the IPO.

advertisement | advertise on newsday

The next year, Microsoft moved operations to a 32,000-square-foot leased office space in Hauppauge.

Microsoft CEO Satya Nadella, who succeeded Steve Ballmer in February, said in an email to employees Thursday that the restructuring was needed for the company to "become more agile."

Microsoft Corp. expects charges of $1.1 billion to $1.6 billion over the next four quarters, largely for severance payments.

In a research note, FBR Capital Markets analyst Daniel Ives said that "while the cuts will be painful for employees, they were necessary, in our view, and speak to Nadella's attempt at cleaning up part of the mess that Ballmer left behind" such as multiple layers of management and costly initiatives.

Microsoft also has opened retail stores on Long Island at Roosevelt Field in Garden City and Walt Whitman Shops in Huntington Station.

You also may be interested in: