Microsoft Makes Cuts to Workforce

 

Microsoft (News - Alert) laid-off 3,000 employees yesterday as part of the 5,000 positions that the company had said they were going to eliminate. The company’s first announcement in January was followed by 1,400 employees losing their jobs, the majority at Microsoft’s headquarters in Seattle, Washington.

 

A Microsoft spokeswoman told ComputerWorld that the 3,000 employees let go yesterday were split between the United States and elsewhere.

 

"As part of the plan we announced in January to reduce costs and increase efficiencies, today we are eliminating additional positions across several areas of the company," said the spokeswoman. "While job eliminations are always difficult, we are taking these necessary actions in response to the global economic downturn."

 

In a 10-Q filing to the SEC on April 23, Microsoft said it has set aside $237 million for severance for 3,400 laid-off employees, "all of whom are expected to leave the company by June 30, 2010."

 

Microsoft still plans to hire 2,000 to 3,000 workers over the next 18 months based on the company’s announcement from earlier in the year.

 

The email that CEO Steve Ballmer (News - Alert) sent yesterday, obtained by ComputerWorld, told employees, “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.”

 

Ballmer continued, “With this announcement, 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.”

 

He added, “For those of you directly affected by today's announcement, I want to thank you for your contribution to Microsoft and assure you that we will continue to provide support as we did during the previous job eliminations.”