More Microsoft job cuts coming?

More Microsoft job cuts coming?

Summary: There have been rumors circulating for months that Microsoft wasn't done with its plans for layoffs. I kept asking around and kept getting nothing definitive back. But it sounds like some cuts are coming, though not as many as happened last year.

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There have been rumors circulating for months that Microsoft wasn't done with its plans for layoffs. I kept asking around and kept getting nothing definitive back.

On July 6, Todd Bishop at TechFlash reported there would be more cuts coming, possibly as soon as this week (the week of July 5). Bishop said the numbers of those likely to be affected were unconfirmed but "far less than the thousands of jobs cut by the company last year."

(Micrsoft cut more than 5,000 jobs last year in two waves. CEO Steve Ballmer said last year that more cuts could be coming, without offering any timetable or further details.)

News.com's Ina Fried reported that some cuts are coming, but not as broad as those which happened last year, citing an unnamed source.

The timing of the cuts, if they happen, makes sense. Microsoft's new fiscal year commenced on July 1, 2010, and the company is due to report its fiscal 2010 earnings on July 22.

On the anonymously-penned Mini Microsoft blog, talk of pending job cuts has been circulating for months, prior to Microsoft's recent decision to halt development of the recently introduced Kin feature phones. Speculation about where those cuts might fall has been all over the map. I've heard the Server and Tools Business (STB) mentioned by a few individuals, with no further details as to specific teams which might get trimmed.

One theory has Microsoft "getting rid of long termers to make way for cheaper newbies." Again, I have no further information at this time to corroborate this.

I'd be interested in hearing from anyone with more information or who gets cut in any new round of layoffs. If you are squeamish about leaving a comment in the Talkbacks, you can reach me using the e-mail form below. All information is treated as confidential.

Topics: Microsoft, CXO, IT Employment

About

Mary Jo has covered the tech industry for 30 years for a variety of publications and Web sites, and is a frequent guest on radio, TV and podcasts, speaking about all things Microsoft-related. She is the author of Microsoft 2.0: How Microsoft plans to stay relevant in the post-Gates era (John Wiley & Sons, 2008).

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Talkback

27 comments
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  • The hell are they doing?

    I can understand bringing in fresh talent, but people loosing jobs isn't fun to read about :(
    The one and only, Cylon Centurion
  • I guess the odds of Ballmer laying off himself are kinda slim, huh?

    We can dream, can't we?
    matthew_maurice
  • "...and kept getting nothing definitive back."

    Sorry, Mary Jo, but the word you want is "definite", not "definitive". I know "definitive" makes the writer look sort of erudite, but using it in an incorrect context only makes you look ignorant.
    nikacat
    • RE: More Microsoft job cuts coming?

      @nikacat Actually the use of "definitive" is perfectly reasonable there. A reply from Microsoft would be definitive (i.e. final and authoritative) whereas rumours are not.

      You might want to be a bit more careful with your accusations of ignorance there...
      ggreig
  • Cut them all

    and give the $$ back to the shareholders.
    itguy08
    • Why? Then they only to choices left would be

      Either Linux or Apple, and neither are up to the challenge, I think you would agree ;
      John Zern
      • RE: More Microsoft job cuts coming?

        @John Zern ...up to what challenge?
        I12BPhil
  • Few are chosen, fewer succeed...

    My rep regularly lets me sit in on interviews of college grads. I usually assume a position behind a one-way pane of glass and watch endless streams of "softies" grill these young college grads on the finer points of technology. When an offer is extended, many of these young people are in SHOCK AND AWE over the opportunity to collect a paycheck from Microsoft. My rep proudly tells me Microsoft pays low wages but capitalizes on the WOW factor of the Company Store.
    Mike Cox
    • HAHAHA, to funny...

      @Mike Cox
      Snooki_smoosh_smoosh
    • the chosen few

      @Mike Cox
      are working for FOSS companies.
      The leftovers go to M$!
      Linux Geek
      • RE: More Microsoft job cuts coming?

        @Linux Geek - And those FOSS companies pay their staff with what? Unicorn fur?
        de-void-21165590650301806002836337787023
    • RE: More Microsoft job cuts coming?

      @Mike Cox
      I wonder how log it takes before OMG replaces WOW.
      AndyPagin
    • RE: More Microsoft job cuts coming?

      @Mike Cox - pretty good. A solid 8.5 and you caught a few fish too! Welcome to the new format Mikey!
      The Danger is Microsoft
    • The WOW factor

      @Mike Cox<br><i>One theory has Microsoft getting rid of long termers to make way for cheaper newbies. </i><br>Question is, will it also be the end of that furry, scone gobbling rep(tile) of yours we've all come to love and hate? That would pack a little WOW! into the WOW factor like few things could. ;)

      Say it ain't so Mikey.
      klumper
  • RE: More Microsoft job cuts coming?

    I wouldn't be surprised to see the Essentials/Small Business Server teams get trimmed. Essentials was discontinued and it makes more sense for MS to have a small business offering that is more BPOS oriented. Sure Exchange on SBS is easier to maintain, but it's still the same Exchange that can demand very specific skills to keep running smoothly.

    I think I'm more surprised that this was announced than I am about positions being eliminated at the end of the fiscal year.
    MSFT_Tinkering
  • There's philanthropy for you.

    Just kidding. It's really about making profit statements look bigger - not by having more customers but by chopping jobs.

    Then wonder why nobody has money left to spent. No jobs or jobs with their pay forcibly deflated while cost of living, education, and others continue to go up.

    TCO and ROI, should people bother to get higher education any more? http://techrepublic.com.com/5208-6230-0.html?forumID=6&threadID=179848&start=0
    HypnoToad72
    • RE: More Microsoft job cuts coming?

      @HypnoToad72 Read your link. My recommendation: Go to college so as not be to be totally ignorant of the world, but then - and *only* then - go to tech school, learn electronics, plumbing, auto mechanics (not so easy anymore) and then get a good job. Don't work in a factory. Network with your industry peers. Love your work. You may still get laid off but you'll last a lot longer. Then move to China.
      Papa_Bill
  • RE: More Microsoft job cuts coming?

    A lesbian that quotes a transgender in her article. I love it! Diversity rules! Microsoft sucks!
    The Danger is Microsoft
    • Flagged too late

      @The Danger is Microsoft, you should have flagged this before you wrote it.
      Papa_Bill
  • Taking a page from IBM's book?

    IBM is famous for laying off people when they get within two or three years of retirement seniority. I personally know two people, one with 17 years in and another with 18 that got canned by IBM and replaced with 'young blood'.

    I guess what is good for the goose is good for the gander. Way to go, MS, give the ABMers something else to fire at you.

    And welcome back to my favorite ABMer, Mikey C. Another good one, as usual.
    babyboomer57