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January 21, 2009

Do the latest Microsoft layoff rumblings signify imminent eruption?

Posted by David Hunter at 11:32 PM ET.

The Microsoft layoff rumors continue. Franklin Paul and Jim Finkle at Reuters – Microsoft expected to cut jobs as profits weaken:

Microsoft Corp is expected to post a quarterly profit that misses its own target and announce thousands of job cuts this week as the global economic slump hurts even the technology industry’s biggest players.

Checks indicate that Microsoft is likely to engage in headcount reductions to the tune of 6,000 to 8,000 employees or 6 percent to 8 percent of its 95,000 workforce," said McAdams Wright Ragen analyst Sid Parakh. "Our checks also revealed some speculation over the potential for a second round of cuts in some groups sometime later in the year."

Ina Fried at CNET – Microsoft’s internal org chart down amid layoff chatter (spotted at Latest Layoff News):

With rumors of layoffs swirling, some Microsoft workers were dismayed on Wednesday to discover that the company’s online internal organizational chart tool is scheduled to be down until Friday.

Mini-Microsoft – FY09Q2 Results + Town Hall:

Town Hall Friday: lots of rumors flying around, quarterly results Thursday, and then a Town Hall Friday morning. Let’s hope that all spells resolution to the fear, uncertainty, and doubt stirred up to a crescendo as of late. The good-ending scenario is that Steve Ballmer gets out there and finally rips the rumors to shreds and proclaims that Microsoft is a one-of-a-kind juggernaut of a company that is going to be in the position to take advantage of the downturn to re-invest and surge past its competition while they are mired in the mud of the recession.

The not-so-good-ending scenario is that there’s some kind of tough-love re-org truth to all the rumors as the leadership balances out and we get to hear how everything is expected to shake out.

Stay tuned.

Filed under Financial, General Business, Layoffs, Microsoft

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One Response to “Do the latest Microsoft layoff rumblings signify imminent eruption?”

  1. Microsoft 2Q09 tanks, announces 5000 layoffs | Microsoft News Tracker Says:

    [...] Microsoft layoff rumors of the last few weeks came true today as the company announced 2Q09 results early – Microsoft to [...]

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