Wednesday, January 7, 2009
Tech / Economy Rumors of Microsoft Layoffs
Posted by Dominic Holden on Wed, Jan 7, 2009 at 1:56 PM
Speculation is brewing across the interwebs that Microsoft may announce up to 15,000 layoffs this month. Sources on the Redmond campus, who describe the departments as fragmented, say they’ve heard gossip, but nothing certain. Some have seen budget cuts and hiring freezes in their departments. One source describes the mood as “cautious” and says staffers are “worried.” Most at risk, they believe, are the battalions of temporary contract employees.
According to MSNBC, one person at Microsoft says the company isn’t planning layoffs, but allowing attrition to its 90,000-person staff as contracts expire. The source also says says the rumors are "grossly exaggerated," but adds that "any company not paying careful attention to headcount in a climate like this is nuts."
Meanwhile, the Seattle P-I reports today that Microsoft is backing out of negotiations for 300,000 square feet of office space in South Lake Union. The decision could indicate the company is finding alternative cost-saving measures—instead of layoffs—or that things are truly dire. The Seattle Times reported last week that some employees abruptly lost their contracts. Most of this remains highly speculative, of course, as Mircrosoft employees are notoriously bound by ball-gag to remain mum. A nameless Microsoft spokesperson, says the company "does not comment on rumors or speculation." Got theories as to what's going on? Send me an email.
UPDATE: A tipper reports on the not-technically-a-mass-layoff strategy...
My understanding after surveying friends is that Microsoft is doing its usual elimination of duplicate groups where they cancel one project and tell those people they have x amount of time to find another job in the company. Since most of the time the people in the canceled groups don’t have a lot of qualifications for other jobs or seniority with the company what happens is after x amount of time those people end up out of a job. It is not, in Microsoft’s eyes a layoff per se, but the net result is the same.
Another reader on the programs getting cut...
Nearly all recruiter contractors are gone at this point. There is a hiring freeze across all of Office and Windows, and you can expect pie-in-the-sky projects to go away. Onecare, for example, has been cut, and also expect a lot of cuts in MSN. I understand "streets and trips" is on the way out as well.
Another reader on the bindings of foreign labor...
Microsoft can't easily fire anyone without letting the employees on H-1B visas go first, and many of them are more valuable to the company than their American counterparts. Instead, they'll be ... eliminating unprofitable groups altogether. The employees of those teams will have to look for others to join, but won't be able to find a new place due to the hiring freeze. An ingenious firing method!
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1
Then I guess it doesn't really matter that I didn't get that contract job I interviewed for in October, does it mom?
2
Microsoft doesn't lay off people, they fire them. You see, they do twice annual reviews and put people into buckets: underperformed, achieved, exceeded. Those that have had one or more underperforms in their career, particularly if they haven't promoted in the last 2 years, will probably be fired for low performance. Plus they'll shitcan as many contractors as they can get away with. They also talk a lot about "good attrition", which is a nice way of saying age discrimination. Microsoft loves college hires because they get paid less, work more, and take advantage of fewer benefits.
4
@2 wins.
Open reqs that are truly open are a rare thing at msft. Reqs are usually known to be open only to a college hire or H1 hire, even if they interview openly.
And of course all the dash trash that do all the actual work will be gone to be replaced with outsourcing and automation.
Open reqs that are truly open are a rare thing at msft. Reqs are usually known to be open only to a college hire or H1 hire, even if they interview openly.
And of course all the dash trash that do all the actual work will be gone to be replaced with outsourcing and automation.
5
@2, I don't know, there have been a few RIFs already on campus. But I have noticed a bunch of existing FTEs being swapped between departments in lieu of hiring new temps, and several FTEs moving from India to fill positions here.
6
Well, when you build a shitty product, (Vista anyone? Office 2007?) and the economy goes to the tank; then yeah I think there should be some lay offs. Maybe it will be a good chance for Microsoft to cut the fat, and they have TONS of it.
7
@5 RIFs(reduction in forces) aren't layoffs, because a RIF means you have a chance to find another job within the company for a set number of weeks after which you are fired. A layoff is involuntary unemployment without that opportunity. That's how Microsoft defines it, so therefore they aren't laying off anyone. See how nicely that works for them?
9
@8 It depends which group they're in. People in Office and Server and Tools are probably fine, but if you're in MSN or sales or marketing, you should probably be updating your resume this week.
10
If you want to know more of the sordid inner workings of Microsoft, go here http://minimsft.blogspot.com
11
@7 WTF, seriously?! But 99% of the RIF-ers can't get another job within the organization, since there's the whole hiring freeze thing going on. ARG.
12
Well I have to say that "knows MS well", really does know MS well.
Sometimes there are shitty employees who actually deserve to be fired. Unfortunately in the last ten years or so at Microsoft those employees often haven't been fired. Instead they've been promoted.
You always know someone is on their way out when suddenly they begin working on "special projects."
Sometimes there are shitty employees who actually deserve to be fired. Unfortunately in the last ten years or so at Microsoft those employees often haven't been fired. Instead they've been promoted.
You always know someone is on their way out when suddenly they begin working on "special projects."
13
Another thing to understand about Microsoft's mentality toward firing people is that whenever you see an executive leaving to "spend time with family" or "pursue other opportunities" that's code for being offered a choice between getting fired or leaving gracefully.
15
People who know MS, do the RIF-ed people get unemployment or severance, or are they just fired? I won't be RIF-ed, I'm just curious...
16
@15 - in general (not MS specific), you can only expect unemployment if you: 1. are employed full-time, 2. have been so for at least 6 mo., and 3. are not fired with cause.
17
Also, as Lily says @11 with a hiring freeze going on there really aren't other jobs to be found, though you can bet that Microsoft does work hard to keep the employees they want to keep, even if that person is on a canceled project team.
20
I just hope that only ONE person is laid off from that place - my ex-husband.
I sure hope noone else loses their jobs.
I sure hope noone else loses their jobs.
21
there are tons of high paying jobs posted on certain job sites -
www.linkedin.com
www.indeed.com
www.realmatch.com
Any or all of these sites have great jobs for those looking.
www.linkedin.com
www.indeed.com
www.realmatch.com
Any or all of these sites have great jobs for those looking.
22
I'd be lying if I said I wasn't worried. I watched as all the other contractors in my department were let go before the holidays. I'm one of 7 people they chose to keep on. I'm hoping my contract will extend through March but I'm lucky because I won't be screwed if it doesn't. I just got rid of my apartment and moved in with family while I go back to school. I think I'll be able to ride things out on unemployment and student loans until things shape up out there but I feel very sad for my co-workers and friends, many of whom will be in a much tougher place than I am.
23
as of now its all speculations. There is no truth behind all of this. Cost cutting, hiring freeze, laying of under achievers all this is true...but then again can you really blame MS for taking this stance?
24
Layoffs are a comin. Have no doubt about this, it's already happened, but M$ doesn't call it a layoff.
25
It is the utter familiarity of all this from my days with the downsizing telecoms industries. There is nothing here that says Microsoft has much of a future, same as Alcatel, Nortel, though not a vibrant Cisco who successfully moved on from it's 'Office equivalent' of network routers.
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