Wednesday, May 6, 2009

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Microsoft sends second wave of layoff notices to 3,000

Microsoft on Tuesday notified more than 3,000 workers that it was eliminating their jobs. The software maker said in January that it would cut up to 5,000 jobs over the next 18 months. It made 1,400 cuts at the time. With the second wave of notifications on Tuesday, Microsoft has cut nearly all 5,000 jobs already.

Although it didn't announce further layoffs, the fact that the company has already made nearly all the reductions under the January plan means further job actions will have to come under a new round of cuts. In a memo to Microsoft workers, CEO Steve Ballmer left the door open to further action.

"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," Ballmer said in the memo, which was seen by CNET News.

While the positions cut in January were more U.S.-centered, the cuts announced Tuesday were split roughly evenly between U.S. and international workers. The cuts were across the company in terms of job type.

"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," Microsoft said in a public statement confirming the cuts. "While job eliminations are always difficult, we are taking these necessary actions in response to the global economic downturn."
The company still plans to hire 2,000 to 3,000 workers this year in some growing areas of focus, including its online services business.

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