Microsoft: shedding jobs... but still hiring

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As reported here earlier, Microsoft announced that they would experience 5,000 job cuts in the next 18 months.

Even though Microsoft achieved a net profit of $4.17 billion for the last quarter of 2008, this figure was down significantly from the same period in 2007, and led the company to announce it was shedding thousands of jobs. Cross Research analyst Richard Williams notes,"Microsoft has never had a layoff like this in my knowledge, and it's sending a signal that the times are definitely changing."

Steve Ballmer too admitted that things look bad for the economy, saying, "I'm thinking the bottom is deep, but less deep than the 1929 bottom, for example. The economy goes down and stays down, then you start to get slow growth again in a few years."

Still, the company has announced that it is looking to hire new staff across a range of areas, including coders, human resources personnel, accountants, and marketing and advertising executives.

Interestingly, some of these newly opened positions are in job areas in which the company is experiencing cuts.

#1 smithy_dll on 25 Jan 2009 - 09:33

This is what happens when you let business people run engineering companies. They all get on the "We have to show we are serious about cost cutting like everyone" bandwagon. What a bunch of gutless sheep.

(3 replies) #2 webeagle12 on 25 Jan 2009 - 10:09

Steve Ballmer will put Microsoft into a grave

#2.1 thenonhacker on 25 Jan 2009 - 12:39

Well that is what Linux & Apple fanboys would want don't they?

Back to reality, I think Microsoft is effectively replacing some highly-paid staff with low-paid new hired ones.

#2.2 LTD on 25 Jan 2009 - 17:52

thenonhacker said,

Well no, it's actually good for Apple that Ballmer's running thngs. Apple doesn't want MS to fail, by any means.

#2.3 C_Guy on 26 Jan 2009 - 16:37

Of course. Running Windows on a Mac and Running Office on a Mac are among Apple's top reasons to "switch".

#3 badblood on 25 Jan 2009 - 11:06

To be perfectly blunt, they are probably not shedding as many jobs as reported, but using this opportunity to get rid of the people who just aren't pulling their weight.
As long as people still need a Windows OS, Microsoft will never not make a profit. It just confuses me that with businesses still turning profit ($4+ billion) they feel the need to lay off staff. Fair enough, cost saving by cutting contractors is sensible, but permanent staff..... leads me to believe they are scrapping the crap off the bottom of the barrel in their mind!

#4 +tunafish on 25 Jan 2009 - 12:03

Ahh i seen this before, ya lay off some expensive people and then employ people who do the same job but for cheaper

#5 +dead.cell on 25 Jan 2009 - 14:25

As another member of Neowin said the other day, there's a good chance that some people working for Microsoft in areas where they plan to cut jobs may end up getting another job within the company.

#6 +Kirkburn on 25 Jan 2009 - 16:38

It would be very foolish to assume that just because jobs are being cut, there is no need for new positions.

For one, people retire and leave companies every day anyway - they need replacing.
Secondly, you want people working in the right areas: if one area could benefit from more people, they should do that.

Job cuts don't mean a complete freeze of the job market :/

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