Microsoft Sacks 800 [UPDATED]
by John Paczkowski
Posted on November 4, 2009 at 4:58 AM PT
“We are mostly but not all done” with layoffs. So said Microsoft CEO Steve Ballmer in May at the start of a second round of cuts that claimed the livelihoods of some 3,000 employees. Now, six months later, the company is apparently finishing the job.
Sources tell TechFlash that Microsoft (MSFT) will make additional job reductions this week–beginning as early as today. Cuts are expected to number in the hundreds–smaller than those made in January and May, but ugly just the same.
“As we move forward, we will continue to closely monitor the impact of the economic downturn on the company and if necessary, take further actions on our cost structure including additional job eliminations,” Ballmer said in May. Given that Microsoft posted declines in revenue and profits in its latest quarter, I suppose this week’s rumored “action” was inevitable.
UPDATE: Cuts are indeed being made today–800 of them. Here’s the official word from Microsoft:
“Earlier this year, we announced that in order to reduce costs, increase efficiency and prioritize our focus areas, we would eliminate approximately 5,000 positions by June 2010. Today, we are eliminating around 800 positions spread across multiple businesses and locations and have completed our reduction plan sooner than we had anticipated 11 months ago. At the same time, we continue to hire in priority areas, but also understand that continuing to manage our businesses closely, as we always do, can mean additional headcount adjustments.”
