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Microsoft Cuts Another 800 Workers From Staff

By - Source: Tom's Hardware US | B 21 comments

Microsoft has announced that the company will layoff 800 employees, completing its plans to reduce staff by roughly 5,000.

Earlier today, TechFlash cited unofficial but reliable sources who claimed that the Redmond-based company would announce additional job cuts this week, with affected employees receiving word today. Word on the street was Microsoft would cut just under 1,000 and sure enough, Microsoft this afternoon confirmed reports, detailing that it would layoff 800 people.

“Earlier this year, we announced that in order to reduce costs, increase efficiency and prioritize our focus areas, we would eliminate approximately 5,000 positions by June 2010. Today, we are eliminating around 800 positions spread across multiple businesses and locations and have completed our reduction plan sooner than we had anticipated 11 months ago. At the same time, we continue to hire in priority areas, but also understand that continuing to manage our businesses closely, as we always do, can mean additional headcount adjustments.”

TechFlash's source said that some portion of the new cuts would serve as the final phase of the company's original plan to cut up to 5,000, a fact that was confirmed by Microsoft this afternoon. However, the tipster went on to say that the new layoffs were also expected to take the company beyond the original plan and Microsoft seems to have left things fairly open ended with it's promise to continue to manage its businesses closely.

Read more here.

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Top Comments
  • 28 Hide
    SamuelL421 , November 4, 2009 4:31 PM
    Microsoft: "Great job programming Windows 7 guys! Now get the **** out."
  • 19 Hide
    tester24 , November 4, 2009 4:37 PM
    Microsoft: "Those of you who have iPhones or anything Apple related we no longer require your services, have a great day".
  • 11 Hide
    extremepcs , November 4, 2009 5:21 PM
    "At the same time, we continue to hire in priority areas"

    Like tech support call centers in India? I'm sure they are making use of each and every H1B visa available too, to fill the gap left by the layoffs.
Other Comments
  • 28 Hide
    SamuelL421 , November 4, 2009 4:31 PM
    Microsoft: "Great job programming Windows 7 guys! Now get the **** out."
  • 3 Hide
    megamanx00 , November 4, 2009 4:35 PM
    Considering that Microsoft just recently trimmed it's less used offerings (Enactra Encyclopedia anyone) it makes sense. Of course some of those coders may just transfer to somewhere else in MS, but the marketing people that got let go because their product failed may be SOL.
  • 19 Hide
    tester24 , November 4, 2009 4:37 PM
    Microsoft: "Those of you who have iPhones or anything Apple related we no longer require your services, have a great day".
  • 6 Hide
    jerther , November 4, 2009 4:53 PM
    Hahaha, love that pic of Ballmer. He looks like Gargamel :p 

    The news along with that pic reminds me of a clown that dies...
  • -2 Hide
    ssalim , November 4, 2009 4:56 PM
    "At the same time, we continue to hire in priority areas"
    Did you all miss that?
  • 11 Hide
    extremepcs , November 4, 2009 5:21 PM
    "At the same time, we continue to hire in priority areas"

    Like tech support call centers in India? I'm sure they are making use of each and every H1B visa available too, to fill the gap left by the layoffs.
  • 4 Hide
    wildwell , November 4, 2009 6:22 PM
    Does that mean Microsoft just hired 800 new employees over seas?
  • 2 Hide
    cookoy , November 4, 2009 7:48 PM
    As if their bottom line is in the red. Can't they retrain these people to fill those positions left open by those who voluntarily retire or leave the company?
    Or maybe these are really excess baggage with no real contribution to the company. The clown knows best.
  • 3 Hide
    jellico , November 4, 2009 8:15 PM
    cookoyAs if their bottom line is in the red. Can't they retrain these people to fill those positions left open by those who voluntarily retire or leave the company?Or maybe these are really excess baggage with no real contribution to the company. The clown knows best.

    This is a common sentiment when it comes to companies laying people off. It implies an obligation by the company to take care of their employees. Sorry, it doesn't work that way. Companies are in business to make money, first and foremost. They aren't there to provide a paycheck, and benefits, and PTO. Employees have a job and are paid because their services will help the company make money or cut costs. When that service is no longer required, why should the company be obligated to keep paying? If you cancel your cable subscription or phone service or whatever else, do you feel compelled to keep paying them?
  • 0 Hide
    Caffeinecarl , November 4, 2009 9:26 PM
    What the hell are they smokin??? They just released a great new OS!
  • 1 Hide
    enewmen , November 5, 2009 12:16 AM
    I have a problem with large companies in general: IBM, Dell, Avery, etc ( I worked for two of them).
    All companies (large and small) always expect growth. After a company is large, they are about as large as the company can get.
    In the case of Avery, this company is mature, very profitable, and has lots of cash. So, the only way for "growth" is to reduce staff (or replace good staff with cheaper staff).
    Can someone explain why lots of profit and cash is so bad? What's wrong with Dividends? When a company is currently working well, why "fix" it?
    Can someone explain? Thanks.
  • 3 Hide
    Kelavarus , November 5, 2009 12:22 AM
    What Jellico said.

    I just applied for a job, and it says distinctly above where I sign "I understand that if I should be employed, the employer has the right to dismiss me with or without reason."

    I'm betting Microsoft's is similar. If someone SIGNED the bloody paper, they admit they understand that.
  • 1 Hide
    enewmen , November 5, 2009 12:28 AM
    I'm sure employees need to sign they understand they can be fired for any reason any any time. This is easy to understand.
    What I don't understand is companies making huge profits then firing boatloads of people.
  • 1 Hide
    PLATTERMAN , November 5, 2009 1:41 AM
    "Eliminate 5000 jobs, At the same time, we continue to hire in priority areas" Translation: salary dumps, get rid of higher waged regular employees, hire new low waged starter employees that makes it a priority area for sure. How about can the over paid execs whose main functions are to take the corporate planes to go play golf and bitch how bad the economy is and how they have had to cut back on Beluga caviar.
  • 2 Hide
    Onyx2291 , November 5, 2009 2:06 AM
    SamuelL421Microsoft: "Great job programming Windows 7 guys! Now get the **** out."


    I think they pinpointed the people that developed Vista.
  • 3 Hide
    digitalrazoe , November 5, 2009 3:38 AM
    Hasta-La 'Vista' Baby
  • 1 Hide
    walt526 , November 5, 2009 4:47 AM
    "Can someone explain why lots of profit and cash is so bad? What's wrong with Dividends? When a company is currently working well, why "fix" it?
    Can someone explain? Thanks."

    Because senior management compensation is usually tied to stock options. The stock prices will not increase if a mature company that consistently pays out expected dividends but exhibits zero growth, which greatly reduces the value of those options. Managers have a huge incentive to increase stock price at all costs, including laying off workers to boast profits and engaging in risky ventures.

    That's not to say that all layoffs are motivated by executive greed. Depending on whom they cut, MSFT could be justified in reducing headcount at this point in time.
  • 0 Hide
    sylvia648 , November 5, 2009 8:35 AM
    wildwellDoes that mean Microsoft just hired 800 new employees over seas?



    Or they'll wait till an area gets piss poor enough and the people start committing crimes and then put their asses in jail so they can have them package software for nothing. Got to love legal slavery.
  • 2 Hide
    apmyhr , November 5, 2009 8:47 AM
    I hope the people who came up with the Seinfeld commercials are part of this cut.
  • 1 Hide
    sunflier , November 5, 2009 1:31 PM
    Windows 7 is out now.

    MS Memo: Anyone having anything to do with Vista programming...get the **** out!
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