Derrick
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With the second round of layoffs on Tuesday, which included 1,200 people in the US, Microsoft is on its way to achieving the 5000 planned job cuts that it announced in January.
In an open mail to all employees Microsoft CEO Steve Ballmer left the possibility of more layoff’s in the future open:
“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.”
In this most recent round of retrenchments the company declined to comment on how many jobs were cut internationally although it is confirmed that Microsoft let go of 1,200 in the US alone.
The cuts mark the first major layoff in the company’s history, a history which has seen consistent growth from about 31,500 employees in 1999 to 95,000 in 2009. Microsoft still intends to create 2,000 for 300 new jobs in high growth areas this year. The recent cuts were made across the board and did not focus on any particular area.
Microsoft has so far spent $290 million on the first round of job cuts and has budgeted $270 million towards completing the process.
In a recent financial report the company also marked its first drop in sales in its history. Although it made a cool $2.98 billion profit in the last financial year, this is a marked decrease from previous fiscal terms.
All affected workers in the Microsoft stable will receive severance packages according to position and seniority and will also receive career transition services.
In an open mail to all employees Microsoft CEO Steve Ballmer left the possibility of more layoff’s in the future open:
“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.”
In this most recent round of retrenchments the company declined to comment on how many jobs were cut internationally although it is confirmed that Microsoft let go of 1,200 in the US alone.
The cuts mark the first major layoff in the company’s history, a history which has seen consistent growth from about 31,500 employees in 1999 to 95,000 in 2009. Microsoft still intends to create 2,000 for 300 new jobs in high growth areas this year. The recent cuts were made across the board and did not focus on any particular area.
Microsoft has so far spent $290 million on the first round of job cuts and has budgeted $270 million towards completing the process.
In a recent financial report the company also marked its first drop in sales in its history. Although it made a cool $2.98 billion profit in the last financial year, this is a marked decrease from previous fiscal terms.
All affected workers in the Microsoft stable will receive severance packages according to position and seniority and will also receive career transition services.