Skype execs get the boot

Job cuts

Skype has let go of a number of leading executives in an attempt to save money before being fully integrated into Microsoft.

Bloomberg has reported the four vice presidents, two executives, the chief marketing officer and head of human resources would require a smaller payout if their employment was terminated before the Microsoft deal went through.

The acquisition announced in May will see Microsoft pay $8.5 billion (5.25 billion) for the company, which has been facing problems of its own thanks to two incidents of Skype going down in the past few weeks.

Although not finalised, the deal has won approval from the US Federal Trade Commission and will now need to pass EU competition guidelines.

Payouts for members of staff let go in the process tend to be based on the cost of the deal. This means sacking them before Skype becomes officially worth $8.5 billion saves cash.

Despite these other high flyers leaving, the chief executive, Tony Bates, is set to stay on and head up the new Skype division within Microsoft - as confirmed by Steve Ballmer after the deal was announced.

Brian O'Shaughnessy, a spokesman from Skype, confirmed to Bloomberg: "As part of a recent internal shift, Skype has made some management changes."

IT Pro contacted Skype for comment and received the following statement in response: "Skype, like any other pragmatic organisation, constantly assesses its team structure to deliver its users the best products. As part of a recent internal shift Skype has made some management changes"

Jennifer Scott

Jennifer Scott is a former freelance journalist and currently political reporter for Sky News. She has a varied writing history, having started her career at Dennis Publishing, working in various roles across its business technology titles, including ITPro. Jennifer has specialised in a number of areas over the years and has produced a wealth of content for ITPro, focusing largely on data storage, networking, cloud computing, and telecommunications.

Most recently Jennifer has turned her skills to the political sphere and broadcast journalism, where she has worked for the BBC as a political reporter, before moving to Sky News.