Thursday, January 1, 2009
Economy / Tech Happy New Year from Microsoft!
Posted by Jonathan Golob on Thu, Jan 1, 2009 at 10:55 AM
From Mini-Microsoft, and Fudzilla via ArsTechnica: "Rumor: Microsoft to lay off 17% of staff on January 15, 2009"
Staff at Microsoft have been informed that the company is readying major layoffs to its worldwide operations and it's not a small cut, either.
Currently Microsoft employs about 90,000 people across the world and from what we're hearing, some 15,000 of those are expected to be giving marching orders come January 15th. That's almost 17 percent of Microsoft's total work force, not exactly a small number.So far, we haven't managed to confirm what departments or regions will be hit the worst, but we're hearing that MSN might be carrying the brunt of the layoffs. We're also hearing rumors about the possibility of somewhat larger staff cuts at Microsoft EMEA (Europe, Middle East and Africa).
It's unlikely that Microsoft will be laying off a lot of people in departments and regions that are doing well, and considering the recent upturn in console sales, we have a feeling that at least most of the people working in the Xbox 360 departments will be pretty safe.
It's still a rumor, but a scary rumor at that.
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2
It's one thing for a company that's failing to lay-off people. But when a company is still strong and vital and is just looking to boost their stock price, is it really responsible to lay off that many people when the country is in the midst of a serious depression? At the very least if you want to do a major restructuring wait until there's a bit of a recovery.
Microsoft layoffs will simply create more panic and fear, push more companies to lay off employees, and guess what, push more companies to decrease purchases of new software, hurting Microsoft in the end.
And no, I don't work for them.
Microsoft layoffs will simply create more panic and fear, push more companies to lay off employees, and guess what, push more companies to decrease purchases of new software, hurting Microsoft in the end.
And no, I don't work for them.
5
I have been following this story very closely and the Stranger managed to find the one and only quote that says 17% layoffs. Every other source says 10% layoffs. yet the Stranger opted to go for the optimal fear-mongering factor and cite the one place where they are saying 17%. Seriously stranger do a little research before you scare the shit out of people. 17% and 10% are quite different: http://minimsft.blogspot.com/2008/12/rum…
also:
http://minimsft.blogspot.com/2008/12/no-…
also:
http://minimsft.blogspot.com/2008/12/no-…
6
I just thought about this a bit more and Jonathan Golub you are seriously irresponsible (bordering on douchebag) for citing the one and only source that says 17%. The guy who wrote the article you cite does not even live in the US. Yet you chose to cite this over the hundreds of quotes and rumors on Mini-Microsoft that say 10% or not at all. I honestly think there will be layoffs but why do you quote the one and only person that paints the grimmest of all scenaios while everyone else says it will be less drastic?! Oh yes, I forgot, you are an aspiring "journalist" and fear-mongering is what you all do best. Here's a resoultion: do some freaking research lamer!
11
Mama @9: Thanks for posting that Times link. It at least got my hands to stop shaking, and for the moment has kept my bowels from releasing their mighty payload.
16
This is why people say companies like Microsoft are evil. They're a highly profitable company, sitting on billions of dollars in cash, and they're going to lay-off thousands of people into the worse job market in decades (and which is already screwed up by WAMU).
Not only will this badly hurt those individuals who won't find jobs, but it further damages the local economy and the real estate market. Next time Bill Gates starts going on about social responsibility we need to throw this shit in his face.
You want to restructure your company? Fine, wait another six months until the economy as least starts shaping up. Otherwise you're just piling on.
Not only will this badly hurt those individuals who won't find jobs, but it further damages the local economy and the real estate market. Next time Bill Gates starts going on about social responsibility we need to throw this shit in his face.
You want to restructure your company? Fine, wait another six months until the economy as least starts shaping up. Otherwise you're just piling on.
20
Unfortunately there isn't much original reporting to be done because Microsoft obviously isn't going to go on the record until it's a done deal.
I can also tell you from experience that companies routinely lie after the fact about how many people they lay-off. Some claim numbers higher than the reality (since Wall Street loves layoffs), other minimize or outright deny there was a layoff (to hide signs of financial problems).
I can also tell you from experience that companies routinely lie after the fact about how many people they lay-off. Some claim numbers higher than the reality (since Wall Street loves layoffs), other minimize or outright deny there was a layoff (to hide signs of financial problems).
21
Bill retired as chairman to focus on the Bill/Melinda Gates Foundation...
Do these numbers relate to actual Microsoft employees, or is it also taking into account the thousands of contract workers, (like me, gulp!)
Do these numbers relate to actual Microsoft employees, or is it also taking into account the thousands of contract workers, (like me, gulp!)
22
@16: I hope this DOES affect the real estate market. Seattle has not been affected by the price correction as the rest of the country. As somebody who is trying to buy in this market - horray!
23
@21--Gates is still chairman of Microsoft. He stepped down first as CEO, then as Chief Architect. He doesn't have any influence over day-to-day operations, but he is still the head of the board and the largest stockholder.
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