Microsoft cuts jobs globally across the company

Neowin reported yesterday that there were rumors of possible job cuts within Microsoft, and today these rumours turned into reality. Although Microsoft never publicly announced the layoffs, hundreds of workers were told today they would be losing their jobs.

Rumours scattered throughout the company yesterday that Microsoft will continue pruning jobs around the company, and today an unknown amount of workers were laid off, this number was reported to be “in the hundreds.”

The layoffs are reported to be scattered throughout the company, and on a global scale; the hardest hit was in the Seattle region, where cuts were in the low hundreds. Supposedly the largest amount of cuts were made to the marketing department, according to sources that are familiar with the situation.

Microsoft, which employs 88,596 people worldwide as of the end of June 2010, originally planned to cut up to 5,000 jobs by June 2010. Microsoft started their layoffs roughly this time last year when they announced that up to 5,000 people will be facing layoffs. At this time, the company cut 1,400 jobs, with another 3,000 following shortly after.

Employees being cut today were told they could apply for other jobs within the company that were still hiring.

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17 Comments

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ms can afford to keep it's workers, afterall don't they have like 50 bil cash, there just trying to make excuses to put more money into the corp's pockets while forcing ppl to lose there job how dumb. the ceos need to take a pay cut by about 75% to be fair as they make more than what they need.

Just because you can do something doesn't mean you should. If the staff are redundant then it's not good for the company at all for them to stay on. MS needs to spend more time focusing its workforce, not keeping people on a payroll just because they can afford it.

Hey, after that KIN failure I'm sure they need to save all the pennies they can. It would be a good opportunity for Microsoft to figure out what kind of company they want to be and sort out their priorities. It seems like they're scattered all over the place and stretched way too thin.

It's not that they can't afford staff. They just want to save more money. Remember it's all in the interest of the share holders.

wrack said,
It's not that they can't afford staff. They just want to save more money. Remember it's all in the interest of the share holders.

Every garden has to be weeded from time to time otherwise the weeds will take over and cause the garden to produce a poor harvest.

People need to stop looking for 'corporate greed' in every highlevel decision they become privy too.

wrack said,
It's not that they can't afford staff. They just want to save more money. Remember it's all in the interest of the share holders.

Not always. The company I work for had to close many offices, no layoffs, to yes, save money. However, as soon as we are over our financial issues, we will open office again and put ourselves back out there. Companies grew way big for way to long and staffing went out of control. Time to scale back, evaluate what staff is needed and where they are needed and then try things again.

If one thing was clear about the issues with the economy is that businesses cannot afford to keep operating like they have been. If my company didnt change fast, then we would be out of business.

techbeck said,

Not always. The company I work for had to close many offices, no layoffs, to yes, save money. However, as soon as we are over our financial issues, we will open office again and put ourselves back out there. Companies grew way big for way to long and staffing went out of control. Time to scale back, evaluate what staff is needed and where they are needed and then try things again.

If one thing was clear about the issues with the economy is that businesses cannot afford to keep operating like they have been. If my company didnt change fast, then we would be out of business.

Well, this is quite different, Microsoft is not going through financial issues (actually, they just posted an yearly Net Profit of over $14 bi). Also, I used to work for one of the major companies and seen things like firing employees to cut costs and then finding out the such employee was not replaceable and having to hire him back paying him twice as much as before...

These sort of major layouts are all management gain type of stuff: executive lays out hundreds of employee, show to other executives he managed to cut costs, get his bonus + promotion to another area, then the next guy that comes in finds out he needs to hire everyone back...

A leaner, more focused Microsoft is a good thing. I also like thay they have discontinued poor selling products, such as Encarta, Money, Picture It, and seem to be concentrating on their strengths.

I do feel bad for the people who will be losing their job.

COKid said,
A leaner, more focused Microsoft is a good thing. I also like thay they have discontinued poor selling products, such as Encarta, Money, Picture It, and seem to be concentrating on their strengths.

I do feel bad for the people who will be losing their job.

True, but a company like MS not being able to afford its staff is scary. They used to be kings that could throw money anywhere they wanted

Neoauld said,

True, but a company like MS not being able to afford its staff is scary. They used to be kings that could throw money anywhere they wanted

At the same time, just because you can, doesn't mean that you should...

Neoauld said,

True, but a company like MS not being able to afford its staff is scary. They used to be kings that could throw money anywhere they wanted

Many companies scale back, regroup, and then come back with a vengeance. Maybe with Vista and now the Kin, this is what MS is doing and needs to do.

Neoauld said,

True, but a company like MS not being able to afford its staff is scary. They used to be kings that could throw money anywhere they wanted

It's not about "not being able to afford its staff", it's about preparing so that they can best weather the economic storm. Since it is not improving, and financial analysts are not predicting substantial improvement anytime soon (With some predicting a worsening)... Microsoft, like most companies is being smart about this and doing what they need to in order to survive and remain strong...

M_Lyons10 said,

It's not about "not being able to afford its staff", it's about preparing so that they can best weather the economic storm. Since it is not improving, and financial analysts are not predicting substantial improvement anytime soon (With some predicting a worsening)... Microsoft, like most companies is being smart about this and doing what they need to in order to survive and remain strong...

That's a euphemism for "Hell yeah! More money for upper management and projects which will get thrown off the schedule at the altar after spending millions of $ on them! Oh yeaaaaah!".


Preparing for an "economic storm" is an excuse. Why continue hiring if they were in a quagmire? That's right. They are hiring even though layoffs are on. I don't see the logic here from a company who's revenue comes from "logic".

MSFT Income Statement: http://finance.yahoo.com/q/is?s=MSFT&annual

Edited by Jebadiah, Jul 8 2010, 5:56am :

Jebadiah said,
They are hiring even though layoffs are on. I don't see the logic here from a company who's revenue comes from "logic".

Then you are not very logical. Microsoft is a huge company with many divisions, many offices and indeed is international. It's quite normal for large companies to be laying off people in one division whilst another division is hiring.

Jebadiah said,
Preparing for an "economic storm" is an excuse. Why continue hiring if they were in a quagmire? That's right. They are hiring even though layoffs are on. I don't see the logic here from a company who's revenue comes from "logic".
Because the people being fired are in different departments or regions to those being fired. They are cutting back in departments where they don't need the head count. That doesn't mean they want to stop growth elsewhere in the company so they are getting rid off the staff they no longer require and hiring in areas where they do need people.

Contrary to what you seem to be suggesting, it's not always possible to just relocate staff from one role to another, especially if the jobs are completely unrelated.