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Published: January 2, 2009 | Source: TG Daily | Author: Matthew Fogg

Microsofts turn to cull staff numbers?

Microsoft is reportedly set to layoff some 15,000 staff Microsoft logo

In this current climate of economic uncertainty it seems that company positions that were considered fairly ‘safe’, are no longer as secure as once thought. Yesterday we reported on AMD’s staffing layoff’s and the writing down of the value of ATI to the tune of over 50% of its original value. Everywhere it seems, businesses are hurting.

Microsoft too are reportedly readying to wield the ‘layoff hammer’ to around 15,000 employees, which equates to around a 17% reduction Microsoft’s global workforce of 90,000 people. What is surprising is that Microsoft seem to have had healthy product sales during Q4 2008.

In October, the company said that it expects sales of $17.3 billion to $17.8 billion during the Christmas quarter, as well as operating income of $6.1 billion to $6.4 billion. The company has not revised its guidance yet and is unlikely to do so in the coming two weeks. Last year, the company reported record CQ4 revenue of $16.37 billion and record operating income of $6.48 billion.

There have been a number of rumours circulating the net that suggest the staff layoff’s will happen on or around the 15th of January.

Job cuts are usually announced on the day of the earnings release. If Microsoft in fact announces layoffs one week before the earnings release, the company may be preparing Wall Street for bad news one week later.

The Mini-Microsoft blog, which is usually a reliable source on inside-Microsoft topics, also posted a note that “substantial” layoffs are coming on January 15. And while insiders at Microsoft have reportedly stated that the 15,00 jobs suggested is a little too high, the layoff’s will be substantial.

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