On Thursday, Microsoft notified 177 employees working out of its Findlay, Ohio, offices that the company had decided to close its facilities there.

Findlay is home to primarily to Microsoft Business Solutions' Solomon team, but also includes other members of the server and tools, field service and operations teams.

While "there will be some opportunities for redeployment" for these employees at other Microsoft locations, including company headquarters in Redmond, Wash., but a number of employees will be laid off, confirmed a company spokeswoman.

Of the 177 Findlay employees, 108 will be laid off; 53 will be relocated to Redmond or Fargo, N.D.; and 16 will be kept on as telecommuters.

Microsoft acquired the Findlay office when it purchased Great Plains Software in late 2000. Great Plains purchased Solomon Software earlier in 2000.

The Microsoft Business Solutions (MBS) division has been struggling to reach profitability. Company executives have admitted that disarray in the Microsoft's partner channel dedicated to focusing on the small/mid-size market which is MBS' target, has not helped matters.

Microsoft is not discontinuing the Solomon line, the spokeswoman emphasized. Indeed, the company is on tap to provide an upgrade to Solomon in July.

Instead, Microsoft is planning to outsource much of the Solomon development and support to Plumbline Solutions, a Findlay-based company founded in 1980 by one of Solomon's former chairman (and company co-founder) Gary Harpst. Two other Solomon founders, Jack Ridge and Vern Strong, are also part of the Plumbline team. Plumbline issued a press release on Thursday officially announcing its formation.

"Microsoft Business Solutions has signed a letter of intent with Plumbline Solutions to outsource some of its Microsoft Solomon development and product support efforts," according to a corporate statement issued by Microsoft. "Plumbline Solutions will be seeking to employ members of the Microsoft Solomon development and product support teams impacted by the Findlay campus closure. It is projected that Plumbline will employ up to 70 impacted team members."

One source close to the company said the Findlay office will be closed officially on September 30, 2004.