Microsoft denies 'major layoffs' report [Update]
by Xav de Matos 
{ Dec 31st 2008 at 7:00PM }
Original: These are tough economic times not just for the little guys like us but for major corporations. Corporations like Microsoft. Fudzilla is reporting that long-standing rumors of Microsoft job cuts have been confirmed. Microsoft, who employs 90,000 workers worldwide, will make substantial cuts to its workforce. Microsoft plans are to cut 15,000 jobs, which equals about 17% of all employees come January 15, 2009.
Microsoft's Q2 earnings report is due on January 22, 2009, adding more weight to the expected layoffs date. According to the article, rumblings point to most cuts aimed at the MSN division with potentially larger cuts to Microsoft EMEA (Europe, Middle East and Africa).
Not expected to see cuts are departments and regions that are doing well. Considering console sales are on the upswing, Fudzilla theorizes Xbox employees are safe. But for how long?
Reader Comments (Page 1 of 1)
ObiWanKennoli @ Dec 31st 2008 7:33PM
If anyone had any doubt things weren't that bad, this should let them know, they are. I sure as hell hope that the gaming industry as a whole doesn't unexpectedly tank in the near future and we are all left without quality entertainment to fill those empty time slots with.
myabsolution @ Dec 31st 2008 8:07PM
Not a big surprise really, companies gotta trim the fat in order to survive this economic situation.
ScottishPrik @ Dec 31st 2008 8:42PM
Holy crap, 17% of Microsoft losing there jobs in 2 weeks. There's gonna be a shit load of pissed off people coming out of those slave tunnels
MK2008 @ Jan 2nd 2009 12:28PM
LMAO!!!!
d whitaker @ Jan 1st 2009 12:04AM
vista sank-they are holding back windows 7-forcing xp to die, is it any wonder jobs are giong by,by in this economy... companies either grow or shrink...if windows 7 fails ms will shrink
two skunks in a row could spell time for a change for the master control program(see tron) control needs to come back to the user if windows expects to continue (see slow death)..
yo Naturale @ Jan 1st 2009 12:22AM
Where does Tron 2 fit into your economic theory?
Your ideas intrigue me. I'd like to subscribe to your newsletter.
Deezul @ Jan 1st 2009 1:24AM
I wonder if those folks in the Zune test and QA area will be sweating after Z2K...
hellvector @ Jan 1st 2009 2:39AM
After the tone they use in their official announcement about the whole Z2K issue, I think they need to be re-evaluated. Maybe it's just me but they come off as incredibly arrogant in their post.
Deezul @ Jan 1st 2009 9:08AM
And the "fix" really isn't a fix. They didn't do anything, they just said, "Hey, you just lost a day with your Zune. It'll be fine tomorrow." Sounds just like, "Did you try rebooting your PC?"
blah @ Jan 1st 2009 6:41AM
I blame the "I'm a MAC" commercials...hate that fagboy.
Tungsten Plug @ Jan 1st 2009 7:48PM
Yes, that is exactly correct. MS is falling because of that "fag boy." You know the first Xbox 360 to roll off the line had over clocked iMac CPUs? Betcha didn't know that did ya, Fag Boy!?
Tungsten Plug @ Jan 1st 2009 7:51PM
Sorry, it was over clocked Mac Pro CPUs. The same CPU that helped develop the 360. As a matter of fact, J Allard placed the largest order of Macs ever at that time.
Zignon @ Jan 1st 2009 10:37AM
I don't believe that MSFT will be laying off unless there is something more with an acquisition or something of that matter. Possibly with Yahoo. Microsoft has 40 billion in reserve cash and can withstand the economy struggles better than most for a period of time.
What I see happening is a reorg and not straight off layoffs. Groups who are working on uncessary projects may be told something like "we are elimination your position, but you have 90 days to find a new position in Microsoft or else you are gone" sort of thing.
The MINIMSFT blog has plenty of information on the rumor'd layoffs. http://minimsft.blogspot.com/
Sean @ Jan 1st 2009 2:09PM
Ahhhh... you don't understand Wall Street or Big Corporations. Neither do I by the way...
It doesn't matter how much cash a company has, how well it's run, or the fact that it still makes a profit.
All that matters is the stock price and growth. A growing company is one that gets invested in and makes the stock price go up. A company not growing, even if it continues to generate huge amounts cash and profit, is one that deserves to be punished and have it's stock price go down. If a company's cash and profit are not increasing there is a sentiment in a vast majority of the market that company is not worth investing in.
Now MS has two choices, cut divisions that are not growing (i.e. MSN) to make the rest of MS look better and look like a growing company again or change the outlook of the company into a dividend company (i.e. a company Grandma invests in like an electric utility).
Personally, I think massive layoffs are a dumb knee jerk reaction to the current economic crises, why not invest more money into R&D and employee training so that when the economy does take off again, you've got the products and personal to kick some ass.
I hate the "what have you done for me this quarter" approach some many investors take. It's killing the competitiveness of this country.
/End Rant
Zignon @ Jan 1st 2009 10:41AM
"And the "fix" really isn't a fix. They didn't do anything, they just said, "Hey, you just lost a day with your Zune. It'll be fine tomorrow." Sounds just like, "Did you try rebooting your PC?""
Ok.. You are correct that this is not a fix and really probably not the greatest move in PR. What I think possibly happened is that a lot of developers are out on vacation and it was just easier than calling some folks off vacation, getting to the office, writing code, and testing to just say wait until tomorrow. Then once everything is in full swing a patch will be included in the other fixes. Would you really want to rush a fix out the door without proper testing?
Deck @ Jan 1st 2009 3:33PM
I don't like this. Especially because I live in Seattle. This isn't good news. For anything regarding Microsoft.
Selfishly I really do hope no one from the Xbox team specifically gets cut but overall, I am really sorry to hear about even more job losses.
Aaron @ Jan 2nd 2009 9:52PM
Remember that the XBOX team already did a set of layoffs with the whole Ensemble Studios.
Anti @ Jan 2nd 2009 3:24PM
This is purely speculation based on unnamed sources. One could also say that it is expected the MSFT is moving operations to the moon, based on several close sources (who also happen to be unicorns). I believe this is rather irresponsible to push this continued rumor as it seems to only bring joy to those who already dislike MSFT and brings only hand wringing and worry to those that work there. If this information is ever validated that would then be the time to comment on MSFT and the industry as a whole. Until such time that the veracity of the claims by unnamed and secret sources are vetted you may as well talk about the MSFT moon base.
Anti @ Jan 5th 2009 6:54PM
Not Likely...
http://blog.seattlepi.nwsource.com/microsoft/archives/158470.asp
jeff @ Jan 14th 2009 9:50AM
I have a very close friend, who graduated from Harvard. Worked for ML for over 8 years, recently he’s been “right sized” too, despite of his outstanding performance and the increasing revenue he generated. OMG, now the banking industry is badly hurt, how long it would take for those financial background guys like him get back to the job market. Banking jobs are not there as much as before as easily seen on http://www.joboutlets.com and other job sites in the region