Friday, January 02, 2009

Microsoft Planning Huge Layoffs: Report

In this recession and economy, a layoff isn't a surprise. But a layoff of 15,000 people, and from Microsoft, no less? That's nearly a recession unto itself.

That's the latest rumor about potential Microsoft layoffs. Earlier reports stated that as many as 10% could get the axe, and that Wall Street would see that as "healthy," according to Oppenheimer & Co. analyst Brad Reback.

But Fudzilla now says, not only is a layoff a done deal, it will occur on January 15th, and encompass 15,000 employees, which would be about 16.5% of Microsoft's 91,000 employees. Fudzilla sees MSN getting hit the hardest, which makes sense if you think about the struggles Microsoft is having against Google.
The rumor that Microsoft was set to lay off people on January 15th, 2009 is no longer a rumor but a fact. 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.
What's also interesting is that Mini-Microsoft brought up the same date, Jan. 15th, earlier.

Turn around and you'll likely see another company eliminating staff in the name of efficiency. So a layoff is not unlikely, but the sheer amount named here seems out of bounds. Silicon Alley Insider says the following:
Unless Microsoft's business has been absolutely crushed in the past two months, there is no reason for the company to suddenly cut this much cost. Microsoft's margins are still fine, and much of its revenue is generated from multi-year contracts (and is therefore unlikely to see a massive intra-quarter hit).
No comment from Microsoft, as would be the norm for such a rumor. If in fact there is a Jan. 15th layoff, we'll lay even money that some of the people responsible for the recent Z2K debacle will be amongst them.

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