Microsoft Starts Second Round of Staff Cuts
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Microsoft (NSDQ: MSFT) is laying off thousands of employees Tuesday as part of a plan to cut costs that the company announced earlier this year. The company’s financial results have taken a hit in the recession: Last month, Microsoft reported the first year-over-year drop in revenue in its history, although analysts praised its efforts to cut costs.
SEE ALSO: Microsoft CFO: Recovery “Will Be Slow And Gradual”
In January, Microsoft said it planned to cut up to 5,000 jobs over the next 18 months, including 1,400 right away. In an e-mail to all employees Tuesday, Microsoft CEO Steve Ballmer says that “With this announcement, we are mostly but not all done with the planned 5,000 job eliminations by June 2010.” He adds, “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.” It’s not clear yet what divisions at the company are being hardest hit by Tuesday’s layoffs. Some of the cuts are taking place outside the United States, including 144 positions that are being eliminated in Great Britain. More about those cuts on our sister site paidContent:UK.
Read Ballmer’s full e-mail to employees after the jump.
From: Steve Ballmer
Sent: Tuesday, May 05, 2009
To: Microsoft - All Employees
Subject: Update: Realigning Resources and Reducing Costs
In January, in response to the global economic downturn, I announced our plan to adjust the company’s cost structure through spending reductions and job eliminations. Today, we are implementing the second phase of this plan.
This is difficult news to share. Because our success at Microsoft has always been the direct result of the talent, hard work, and commitment of our people, eliminating positions is hard.
Today’s action includes positions in the United States and in a number of countries around the world. In the U.S., affected employees will be notified directly by their managers today. In other countries, local leadership teams will provide more specific information about the impact to their organizations.
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.
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.
And for everyone across the company, I want to reemphasize how much I appreciate the way you have pulled together to help the company respond to this difficult economic environment. There’s no doubt that these are very challenging times. But together, we are making the right choices to ensure that we will continue to deliver great products and position ourselves for strong future growth and profitability.
Thank you for your continued hard work, commitment, and focus.
Steve
Photo Credit: Reuters
@josephtartakoff
May 5, 2009 11:18 AM ET
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