Microsoft begins second round of layoffs. More to come?

Remember when Microsoft first announced it was going to eliminate 5,000 jobs by June 2010? Well it looks like the second round of those lay offs are starting today by cutting 3.000 more of those 5,000 planned job cuts, and according to a memo by Steve Ballmer, there no ruling out the possibility of additional cuts.

"With this announcement, we are mostly but not all done with the planned 5,000 job eliminations by June 2010. We are moving quickly to reach this target in response to consistent feedback from our people and business groups that it's important to make decisions and reduce uncertainty for employees as quickly as possible, and so that organizations can concentrate their efforts and resources on strategic objectives. As we move forward, we will continue to closely monitor the impact of the economic downturn on the company and if necessary, take further actions on our cost structure including additional job eliminations.", says the memo sent out to all Microsoft employees.

While Microsoft officials did not say which departments were being hit, they did say that roughly half of the jobs eliminated were in the US. Even though the company is still eliminating jobs, they're still hiring. In fact, they're planning to hire 2,000 to 3,000 workers this year in their growing areas of focus.

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Microsoft have been chasing companies, and forcing audits on them. This surely has been generating cash, which has kept profits artificially high (and alienating customers). They can not force people to upgrade (we still use Windows 2000, Office 2000, SQL 2000 and Exchange v5.5). They are going to be hit heavily in the next few years, many of the workforce are disillusioned and they have a mad man in charge. Welcome to the real world Microsoft!

You can use Windows 95 with Office 95 if you like but those products are not supported anymore and if you run into problems, MS won't be there to assist you. Thats how companies actually make money out of software, if they were to support their 15 years old stuff they would be out of business. Welcome to the real world boho! Hope you enjoy your stay!

Philip Hristov said,
You can use Windows 95 with Office 95 if you like but those products are not supported anymore and if you run into problems, MS won't be there to assist you.


What sort of problems do you figure wouldn't have started manifesting themselves in some software until 14 years after its release?

Block internet access, and if Win95/Office 95 works for you, there's very little need of "assistance" from Microsoft at this point...

Most large companies in these times are shedding jobs to make them leaner, even highly profitable companies like MS.

So... it's still the same 5000 jobs as announced before? I'm slightly confused... and I wonder if it was stripping out old parts to make room for more? I'm curious where the company will be in 6 months or so... I'm betting leaner and better in spite of the dificulties. Smypothy to those losing their jobs, expecially in this market, but hopefully Microsoft can turn this into a net positive.