More Microsoft job cuts coming?

By | July 6, 2010, 5:12pm PDT

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.

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Mary Jo has covered the tech industry for more than 25 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).

Disclosure

Mary-Jo Foley

Freelance journalist/blogger Mary Jo Foley has nothing to disclose. WYSIWYG (what you see is what you get). I do not own Microsoft stock or stock in any of its partners or competitors. I have no business ventures that are sponsored by/funded by Microsoft or any of its partners or competitors.

Biography

Mary-Jo Foley

Mary Jo Foley has covered the tech industry for 25 years for a variety of publications, including ZDNet, eWeek and Baseline. She has kept close tabs on Microsoft strategy, products and technologies for the past 10 years. In the late 1990s, she penned the award-winning "At The Evil Empire" column for ZDNet, and more recently the Microsoft Watch blog for Ziff Davis.

Got a tip? Send her an email with your rants, rumors, tips and tattles. Confidentiality guaranteed.

Talkback Most Recent of 28 Talkback(s)

  • The hell are they doing?
    I can understand bringing in fresh talent, but people loosing jobs isn't fun to read about sad
    ZDNet Gravatar
    Cylon Centurion
    6th Jul 2010
  • ZDNet Gravatar
    matthew_maurice
    6th Jul 2010
  • "...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.
    ZDNet Gravatar
    nikacat
    7th Jul 2010
  • 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...
    ZDNet Gravatar
    ggreig
    7th Jul 2010
  • Cut them all
    and give the $$ back to the shareholders.
    ZDNet Gravatar
    itguy08
    7th Jul 2010
  • 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 ;
    ZDNet Gravatar
    John Zern
    7th Jul 2010
  • RE: More Microsoft job cuts coming?
    @John Zern ...up to what challenge?
    ZDNet Gravatar
    I12BPhil
    7th Jul 2010
  • 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.
    ZDNet Gravatar
    Mike Cox
    7th Jul 2010
  • ZDNet Gravatar
    Snooki_smoosh_smoosh
    7th Jul 2010
  • the chosen few
    @Mike Cox
    are working for FOSS companies.
    The leftovers go to M$!
    ZDNet Gravatar
    Linux Geek
    7th Jul 2010
  • RE: More Microsoft job cuts coming?
    @Linux Geek - And those FOSS companies pay their staff with what? Unicorn fur?
    ZDNet Gravatar
    de-void-21165590650301806002836337787023
    7th Jul 2010
  • RE: More Microsoft job cuts coming?
    @Mike Cox
    I wonder how log it takes before OMG replaces WOW.
    ZDNet Gravatar
    AndyPagin
    7th Jul 2010
  • 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!
    ZDNet Gravatar
    The Danger is Microsoft
    7th Jul 2010
  • The WOW factor
    @Mike Cox
    One theory has Microsoft getting rid of long termers to make way for cheaper newbies.
    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. wink

    Say it ain't so Mikey.
    ZDNet Gravatar
    klumper
    7th Jul 2010
  • 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.
    ZDNet Gravatar
    webdev511@...
    7th Jul 2010

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