Microsoft to cut more jobs as early as today

Microsoft is preparing to cut more jobs as early as today, as rumors from within the company begin to leak outside. Employees have been hearing that Microsoft is planning more layoffs, but not as big as first two round of job cuts earlier this year, according to Techflash.

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.

The move to cut more jobs may come as early as tomorrow, but is expected sometime this week. The unknown amount of cuts is to cut back on the company's expenses and headcount. As Microsoft gears up for these cuts, they are still continuing to hire in other areas around the world.

There isn't any word on which departments will see job cuts or even how many people Microsoft plans to layoff.

Microsoft will report their quarterly and annual earnings on July 22.

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Naturally they'll continue to hire in other parts of the world as long as the cost is lower. Sucks for the people losing their jobs here though.

Well it's probably not just a regional thing but more to do with where they need resources. Other countries doesn't specifically mean the employees are cheaper to employ...they could fulfill different needs.

jnelsoninjax said,
That really does suck, is the economy still that bad that even MS fells the need to lay off people?

economy is getting better but since many major products like win 7,office 2010,visual studio 2010 etc are released they might cut some jobs to cut on cost

still1 said,

economy is getting better but since many major products like win 7,office 2010,visual studio 2010 etc are released they might cut some jobs to cut on cost

yes... it's getting better... with more unemployment, with fewer getting unemployment benefits... lower consumer confidence, less spending, worse housing situations, and the largest tax increase in us history 5 months away and counting....

sorry, we're going down again... and Microsoft's doing what EVERYONE is doing...cutting whatever fat they can now to avoid having to cut into the meat later

AgentGray said,

yes... it's getting better... with more unemployment, with fewer getting unemployment benefits... lower consumer confidence, less spending, worse housing situations, and the largest tax increase in us history 5 months away and counting....

sorry, we're going down again... and Microsoft's doing what EVERYONE is doing...cutting whatever fat they can now to avoid having to cut into the meat later

Good post. I'm glad someone else can see past the "Whitehouse Marketing"... Temporary Government jobs does not an economy make... lol

jnelsoninjax said,
That really does suck, is the economy still that bad that even MS fells the need to lay off people?

Hate to tell you this Bud., but they know the world economy is never going to be the same again, whatever you might see or hear in the media. Microsoft are coming that realization; their cash cows (Windows and Office) days are numbered. They can keep churning out the same old software, but the old stuff still works just fine, but they are competing with alternatives that are FREE! Their world is in decline and they need to reduce their costs. Stock holders now need to see a return on their holdings.

boho said,

but they are competing with alternatives that are FREE!

That's a pretty myopic statement.

The fact is that it takes time, resources, know-how to develop and maintain "FREE" software. The better off the global economy is doing the more time people will have to dedicate to such endeavors.

As the economy slows, the worker pool developing "FREE" alternatives will also contract as people seek resources to pay the bills.

I hope the situation doesn't get dire enough to prove me right. The suck would probably have to see a sharp increase before people abandon their hobbies due to cost-cutting.

Things aren't looking good though because so far the US response to the downturn has been to emulate the steps that "got us out of the Great Depression" even though most economists (with a track record of being right) now believe those measures actually prolonged and worsened the crisis.

TANSTTAFL

Not good for the morale of the employees if you are going to layoff people every so many months.
I am sure most of the layoff is coming from the lower layers. Management guys must be sitting pretty.

figgy said,
Not good for the morale of the employees if you are going to layoff people every so many months.
I am sure most of the layoff is coming from the lower layers. Management guys must be sitting pretty.

Not really. If a specific part of the company is to be cut, or down graded then the managers of that part of the company are in the same position as the worker bees. Or, if Microsoft decide to merger a couple of departments then why would you need the managers from both. . .goodbye to someone.

Pam14160 said,

Not really. If a specific part of the company is to be cut, or down graded then the managers of that part of the company are in the same position as the worker bees. Or, if Microsoft decide to merger a couple of departments then why would you need the managers from both. . .goodbye to someone.

Exactly. The last layoff saw some highly regarded management let go...

figgy said,
Not good for the morale of the employees if you are going to layoff people every so many months.
I am sure most of the layoff is coming from the lower layers. Management guys must be sitting pretty.
I tend to agree with you. If the worker bees are getting laid off, wouldn't the other worker bees think they are next in line? It is really really bad for morale. More and more employees will themselves decide to get out of the company to work for competitors, and that's going to hurt MS in the long run.

From the shareholders's point of view, this is a great thing. From the employees's point of view, they are just forced to put up this bull **** from upper management every 2-3 months.

reminds me of companies like northrop & lockheed. They hire a bunch of cheap engineers, then lay them off after a project...

Middle age waist-line bulges have nailed them. MS got way too complacent with printing money. The slowdown hit-competition. Windows 7 was a watershed in MS performance. While it's a great OS, it took way too long to complete and management played musical chairs with platforms team. I think they fired 2-3 senior VPs during Win7 development. They were not using their human resources wisely and it cost them big-time.
With Office 2010's release-the no-upgrade wonder-it's clear they are scraping to make $. How badly is unclear with 5000 layoffs is no joke. I wonder how many of the foreign nationals that hold H1 visas (Bill Gates legacy) are getting tossed.

I disagree with EKWs comment on Defense contractors. The defense industrial base merged into a few firms and they are eating up USG contracts. However, those contracts drive employment. No more "company men/women" or firm loyality to their employees. Bottom Line is the financial bottom line for stockholders. MS serves the few by selling to the many for the most they can make.

I don't think that this should suprise anyone. Ballmer directly took over the E&D division so there's bound to be layoffs that come with the restructuring.

It really sucks but it's all about getting all the cogs working together again.

Bengal34 said,
I don't think that this should suprise anyone. Ballmer directly took over the E&D division so there's bound to be layoffs that come with the restructuring.

It really sucks but it's all about getting all the cogs working together again.


Yea exactly, but its unfortunate that people had to lose their jobs.

Think back to the dawn of the industrial age. How many manufacturing jobs were lost due to mechanical automation.

We are in the information age. Information worker jobs are being consolidated through software automation.

Yes it sucks for the people who are losing their jobs. On the same token it's better for all of us that Microsoft are making their operations more efficient. It means that the process can be repeated in our own organizations. Better faster cheaper is the way to go.

Find a hobby, something you love; then figure out how to make money at it.
When your 9-5 goes away, you'll have something to fall back on.

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