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Microsoft Goes Ahead With Job Cut Plans

It seems that Microsoft is readying itself to layoff of thousands of workers in the second phase of its layoff plans which it had announced earlier this year.

Incidentally the company had already slashed 1400 jobs in its first round of layoffs which took place in January and the new job cuts are expected to bring the total number of layoff close to its original estimate of 5000 job cuts by June 2010.

In an email sent to the employees on Tuesday, the Chief Executive Officer of Microsoft, Steve Ballmer stated that further layoffs would be needed if the current situation continues.

Expressing his view on subject Ballmer wrote “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.”

The latest round of layoffs is expected to affect many employees working in US and a number of other countries; however the company has refused to disclose the locations which will be affected by this move.

Striking a positive note, the company also mentioned it that plans to create around 2000 to 3000 new jobs by August 2010 and it will aim to rehire some of its laid off employees in the process.

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Our Comments

150 Microsoft UK employees are likely to lose their jobs fairly soon as the software giant implements its cost cutting process worldwide. Microsoft expects a massive turnaround in the economy by August 2010 which is roughly 9 months (or three quarters) after Windows 7 is expected to be launched and just in time for the back to school period.

Related Links

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(Market Watch)

Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.