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

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.

Topics: Microsoft, CXO, IT Employment

About

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).

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19 comments
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  • Geeee ....

    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.?
    Linux_4u!
    • The un-Wow starts now.

      Yes it would be nice to see the end of the Microsoft style bullsiht speak.
      fr0thy2
  • Yeah, poor Rockhead Davidson was evidently ...

    ... 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!
    OButterball
    • LOOK EVERYONE!!@#@!!! I'M MENTIONED AGAIN!!@#@!

      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! :)
      Loverock Davidson
      • Don't confuse fame with infamy (NT).

        .
        TheTruthisOutThere@...
      • People step in doggy doo too.

        It doesn't mean that they meant to.
        fr0thy2
  • RE: Sales, marketing and support bearing the brunt of new Microsoft job cuts?

    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!
    coyodel
    • VirtualEarth can die.

      We've got Google Maps which isn't run by a sick lying company.
      fr0thy2
      • Gee thanks...

        ...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.
        coyodel
  • RE: Sales, marketing and support bearing the brunt of new Microsoft job cuts?

    Loyalty Baby Loyalty, this is what you get when you are Loyal :)
    aspemail@...
  • Support? What Support?

    Since Microsoft support is hidden so deeply that it is invisible, nobody will even notice if there are cuts.
    Harry Palmer
    • Consumer support maybe

      But not professional support.
      ITLeader
    • Yeah, REALLY DEEP...

      jeez!

      http://support.microsoft.com/

      I hear your village calling, they really miss their idiot.
      Confused by religion
      • They can up the waiting times to make more revenue from less staff.

        ;-)
        fr0thy2
  • Just goes to show...

    How important customer service is to MS.
    John L. Ries
  • They are typically the first to go...

    ...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
    TripleII-21189418044173169409978279405827
    • Yep, seen that happen more than once.

      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.
      fr0thy2
  • RE: Sales, marketing and support bearing the brunt of new Microsoft job cuts?

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