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Sales, marketing and support bearing the brunt of new Microsoft job cuts?

By | May 5, 2009, 9:21am PDT

Summary: Where is Microsoft cutting jobs in Round 2 of its planned 5,000-person layoff? An alleged internal e-mail indicates that Microsoft’s Sales, Marketing and Service Group (SMSG) will be bearing the brunt of the latest cuts.

Where is Microsoft cutting jobs in Round 2 of its planned 5,000-person layoff? An alleged internal e-mail indicates that Microsoft’s Sales, Marketing and Service Group (SMSG) will be bearing the brunt of the latest cuts.

CEO Steve Ballmer isn’t the only one firing off layoff missives to Microsoft employees on May 5. The lead cost cutter, Chief Operating Officer Kevin Turner, seemingly has sent a Wave 2 layoff memo to the troops, as well. (I say “seemingly” here more as a formality than anything. Microsoft officials are declining to verify the authenticity of any memos about cost cuts other than CEO Steve Ballmer’s May 5 e-mail.)

Turner’s alleged e-mail indicates that Microsoft’s Sales, Marketing and Service Group (SMSG) will be bearing the brunt of Round 2 of the Microsoft layoffs. Turner’s memo is up on the Mini-Microsoft India blog.

“As most of you would be aware, our Q3 performance brought our first quarterly revenue decline in our history and a decline in year over year profit by 32%. As announced in January, Microsoft will take responsible action to manage our cost structure in the current environment and unfortunately these actions will impact the worldwide SMSG organization.

“This current business situation is unlike anything we have seen in our lifetime and we must continue to keep a close watch on the constantly evolving and fluid environment and align our resources and business priorities accordingly.”

What is SMSG? From Microsoft’s Web site:

Microsoft Sales, Marketing, and Service Group (SMSG) is the sales, marketing, consulting, technical support, and customer service arm of the world’s leading software company. The organization helps customers and partners discover and implement high value Microsoft solutions that generate rapid, meaningful, and measurable results. With its global partner network and support infrastructure, Microsoft SMSG enables the successful adoption, deployment, and use of Microsoft solutions and technologies for all customers around the globe, from the individual to the enterprise.”

Mini-Microsoft India also has posted a note allegedly sent to Microsoft India employees noting that one percent of the Indian employee rolls are being cut in the latest round of layoffs.

(Thanks to Who da’Punk, a k a, the original Mini-Microsoft blogger, for the pointers.)

Update (May 6): Microsoft’s advertising units seem to have gotten chopped in Round 2 of layoffs. The Massive in-game ad team reportedly got hit hard. One adCenter Community program manager who got the ax wrote a first-hand account about his layoff.

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Topics

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.

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RE: Sales, marketing and support bearing the brunt of new Microsoft job cuts?
makrekdw17-24353588422802948139993715967892 Updated - 11th Nov
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0 Votes
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Geeee ....
Linux_4u! 5th May 2009
Maybe that is where Mike Cox's had been. Writing press for the SMSG group .....

?Microsoft Sales, Marketing, and Service Group (SMSG) is the sales, marketing, consulting, technical support, and customer service arm of the world?s leading software company. The organization helps customers and partners discover and implement high value Microsoft solutions that generate rapid, meaningful, and measurable results. With its global partner network and support infrastructure, Microsoft SMSG enables the successful adoption, deployment, and use of Microsoft solutions and technologies for all customers around the globe, from the individual to the enterprise.?
0 Votes
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The un-Wow starts now.
fr0thy2 7th May 2009
Yes it would be nice to see the end of the Microsoft style bullsiht speak.
0 Votes
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... at the Troll Help Desk over at MS. I guess he's now out of a job and thinking of going over to Redhat. They're hiring.

BWAHAHAHA!
0 Votes
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LOOK EVERYONE!!@#@!!! I'M MENTIONED AGAIN!!@#@!
Loverock Davidson 5th May 2009
So that is two times today that my name gets mentioned on articles I haven't commented on yet. My popularity is really growing! People KNOW me! happy
0 Votes
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Don't confuse fame with infamy (NT).
TheTruthisOutThere@... 5th May 2009
.
  • Flagged
0 Votes
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People step in doggy doo too.
fr0thy2 7th May 2009
It doesn't mean that they meant to.
Yea actually some of the brunt came from the search group and a big out wack out of the VirtualEarth shop today including myself. Bummer though we were doing some pretty kick @ss work there.

Weeee!
0 Votes
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VirtualEarth can die.
fr0thy2 Updated - 7th May 2009
We've got Google Maps which isn't run by a sick lying company.
0 Votes
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Gee thanks...
coyodel 7th May 2009
...for the support. Feel free to send me a check every couple of weeks so I can pay the bills. Next time you get laid off I'll try to offer a bit more support than you did.
Loyalty Baby Loyalty, this is what you get when you are Loyal happy
0 Votes
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Support? What Support?
Harry Palmer 5th May 2009
Since Microsoft support is hidden so deeply that it is invisible, nobody will even notice if there are cuts.
0 Votes
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Consumer support maybe
ITLeader 5th May 2009
But not professional support.
0 Votes
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Yeah, REALLY DEEP...
Confused by religion Updated - 5th May 2009
jeez!

http://support.microsoft.com/

I hear your village calling, they really miss their idiot.
0 Votes
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Just goes to show...
John L. Ries 6th May 2009
How important customer service is to MS.
0 Votes
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They are typically the first to go...
TripleII-21189418044173169409978279405827 6th May 2009
...in any slowdown. When 1/2 your salespeople are idle and the remaining are having a hard time pushing products to those who will even listen, you simply have no choice. MS is not immune and is acting like any company would.

The support side, that's another problem. Customer service costs a lot, it is an intangeable (hard to quantify) benefit, but is probably more critical in slow times. You treat someone well when the chips are down, they become your best salespeople when the economy recovers. It's an easy (and usually a mistake) expense to justify eliminating because it doesn't "generate revenue" but many many companies can attribute their eventual downfall to this one action.

TripleII
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I've seen a few companies shedding technical staff for the bean-counters, only to have a panic recruitment drive later to counteract the ensuing loss of customers.

Trouble is, they end up with a far less experienced crew, and more unhappy customers.
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RE: Sales, marketing and support bearing the brunt of new Microsoft job cuts?
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RE: Sales, marketing and support bearing the brunt of new Microsoft job cuts?
makrekdw17-24353588422802948139993715967892 Updated - 11th Nov
Allow for everyone would ravens jersey like your merely vanishes most definitely. Of course, used to require Vikings to get started out doors experiencing and ravens jerseys so i don't where cheap jerseys either.

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