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Wave 2 of announced layoffs hits Microsoft

By | May 5, 2009, 6:56am PDT

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.)

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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.

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RE: Wave 2 of announced layoffs hits Microsoft
dsfwrryd18-24353589260930765128987193640853 Updated - 11th Nov
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0 Votes
+ -
Ballmer should add himself to the list.
betelgeuse68 5th May 2009
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
0 Votes
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If you had a job...
Confused by religion 5th May 2009
... you would have been first on the list of layoffs.
0 Votes
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and close up shop.
0 Votes
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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.
I dont get it.


as per the issue here. I guess the free ride is over.
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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....
0 Votes
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Well, obviously ...
RealGem 6th May 2009
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.
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RE: Wave 2 of announced layoffs hits Microsoft
Anita Y. Mathis 6th May 2009
"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.
0 Votes
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RE: Wave 2 of announced layoffs hits Microsoft
michael.burgess@... 6th May 2009
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.
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RE: Wave 2 of announced layoffs hits Microsoft
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RE: Wave 2 of announced layoffs hits Microsoft
dsfwrryd18-24353589260930765128987193640853 Updated - 11th Nov
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