Wave 2 of announced layoffs hits Microsoft

Wave 2 of announced layoffs hits Microsoft

Summary: There have been rumors for the past month or so that Microsoft was planning to do more layoffs. On May 5, the rumor became reality, with Microsoft announcing wave two of the already announced job cuts.

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There have been rumors for the past month or so that Microsoft was planning to do more layoffs. On May 5, the rumor became reality, with Microsoft announcing wave two of the already announced job cuts.

Microsoft officials announced in January that it planned to cut a total of 5,000 employees between the start of this year and June 2010. Microsoft cut more than 1,000 jobs by April. Today's round involves most of the remaining 3,000+ folks who had yet to be notified.

An email allegedly sent by CEO Steve Ballmer to employees on May 5 made it sound as though this is round two of the already announced cuts. But Ballmer didn't rule out additional ones. From that e-mail:

"With this announcement, we are mostly but not all done with the planned 5,000 job eliminations by June 2010. We are moving quickly to reach this target in response to consistent feedback from our people and business groups that it’s important to make decisions and reduce uncertainty for employees as quickly as possible, and so that organizations can concentrate their efforts and resources on strategic objectives.

"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."

Here's the full text of Ballmer's May 5 e-mail to employees.

No word so far on which groups are affected by today's cuts. Round one impacted heavily the entertainment and devices team, Microsoft's business-intelligence unit and other content-creation-focused positions inside the company.

Update: Microsoft is not talking about which groups are being cut most deeply in this round, but a spokesperson noted that half of today's announced cuts are of U.S.-based employees and the other half are of Microsoft employees located overseas.

Update No. 2: Reports from Microsoft India (via Mini-Microsoft India) indicate that 1 percent of all Microsoft India employees are being cut. From an alleged internal memo: "I am saddened to share that about one percent of the net rolls across India will be impacted by the realignment. While the impact is across almost all business units, the highest impact is across MSIT and SMSG." (That's Microsoft IT and the Sales, Marketing and Service Group.)

Topics: CXO, Microsoft, 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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10 comments
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  • Ballmer should add himself to the list.

    MSFT has done nothing under his reign. He's a
    capricious individual (which undermines
    leadership) and has absolutely no vision.

    This guest column yesterday on ZDNet lays it out
    well:

    http://blogs.zdnet.com/BTL/?p=17394

    -M
    betelgeuse68
    • If you had a job...

      ... you would have been first on the list of layoffs.
      Confused by religion
  • Maybe they should do the world a favor

    and close up shop.
    itguy08
    • You mean "Maybe they should do me a favor..."

      Very childish attitude you're sporting there.

      Microsoft is still one of the biggest employers and their products are still by a huge margin the most widely used in the computer market.

      Cope.
      TheWerewolf
  • Why is it there are three posts on the front page regarding the same topic?

    I dont get it.


    as per the issue here. I guess the free ride is over.
    Been_Done_Before
  • RE: Wave 2 of announced layoffs hits Microsoft

    Why doesn't these large companies start cutting cost with the TOP DOG'S. I mean come on as 1 of these guys salaries could keep 1000's employed and think of the BONUS MONEY they would not have to pay out then?? That could be another 1000 or so employees.... When are they going to start being accountable for their actions and take a pay cut instead of laying off the little guys for once....
    Roadrunnr12
    • Well, obviously ...

      So, the company would be run by a bunch of people like you? Guys who think Ballmer earns $100m per year (from your math)?

      I suppose if you wanted to run the company into the ground, sure you could replace the execs with programmers or salesmen.
      RealGem
  • RE: Wave 2 of announced layoffs hits Microsoft

    "it?s important to make decisions and reduce uncertainty for employees as quickly as possible"

    He's confident this is the right decision without a doubt.
    Anita Y. Mathis
  • RE: Wave 2 of announced layoffs hits Microsoft

    The report does not say who was layed off. So far major corporations have been eliminating the many layers of middle management and keeping those employees that have been adding to the bottom line.

    Middle management does not write code or sevice the customers..just remember that.
    mike_patburgess@...
  • RE: Wave 2 of announced layoffs hits Microsoft

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