Microsoft said on Wednesday that it is notifying approximately 800 workers that their jobs are being eliminated as the software giant completes the layoffs it announced earlier this year.
In January, Microsoft said it would cut approximately 5,000 positions before the end of the next fiscal year, which ends in June. With the latest cuts, Microsoft said it has essentially completed those layoffs. Microsoft CEO Steve Ballmer said in May that it was mostly, but not entirely, done with the job eliminations.
Actually, though, the latest cuts will push Microsoft past that 5,000 number. Once these cuts are made, it will have eliminated approximately 5,800 jobs since January, said Microsoft spokesman Lou Gellos.
Wednesday's job cuts were spread across multiple businesses and around the globe, Gellos said. Microsoft didn't announce any specific products that are getting the axe as a a result of Wednesday's cuts, although it has cut a variety of products in recent months, including Microsoft Money, Windows Live OneCare and, just this past week, its small business accounting product line.
There could also be additional cuts, even as Microsoft does some hiring in key areas. Although January's layoffs were the company's first across-the-board cuts, it regularly reviews its businesses and makes adjustments as necessary, Gellos said.
"We'll manage our businesses closely and do the things that we need to do," Gellos said.
Update 12:05 p.m. PT: As noted by TechCrunch and others, among those let go on Wednesday was Don Dodge--one of Microsoft's key voices in Silicon Valley and a director on the company's emerging business team. Dodge wrote about the turn of events on his personal blog Wednesday.
In the wake of handing out 3,000 layoff notices Tuesday, Microsoft CEO Steve Ballmer sent an e-mail to staff.
Ballmer characterized the cuts as the second phase of the plan announced in January. At the time, Microsoft said it would cut 5,000 jobs over an 18-month-period. With the cuts made in January and those announced on Tuesday, Microsoft has now nearly eliminated all those positions.
Here is the text of Ballmer's e-mail, which was seen by CNET News.
From: Steve Ballmer
Sent: Tuesday, May 05, 2009
To: Microsoft - All Employees
Subject: Update: Realigning Resources and Reducing CostsIn January, in response to the global economic downturn, I announced our plan to adjust the company's cost structure through spending reductions and job eliminations. Today, we are implementing the second phase of this plan.
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.
Today's action includes positions in the United States and in a number of countries around the world. In the U.S., affected employees will be notified directly by their managers today. In other countries, local leadership teams will provide more specific information about the impact to their organizations.
With this announcement, we are mostly but not all done with the planned 5,000 job eliminations by June 2010. We are moving quickly to reach this target in response to consistent feedback from our people and business groups that it's important to make decisions and reduce uncertainty for employees as quickly as possible, and so that organizations can concentrate their efforts and resources on strategic objectives.
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.
For those of you directly affected by today's announcement, I want to thank you for your contribution to Microsoft and assure you that we will continue to provide support as we did during the previous job eliminations.
And for everyone across the company, I want to reemphasize how much I appreciate the way you have pulled together to help the company respond to this difficult economic environment. There's no doubt that these are very challenging times. But together, we are making the right choices to ensure that we will continue to deliver great products and position ourselves for strong future growth and profitability.
Thank you for your continued hard work, commitment, and focus.
Steve
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.
Market research firm IDC on Friday said it is cutting 82 workers in the United States, or 5 percent of its worldwide staff "due to the impact of the economic recession."
The Framingham, Mass.-based company said that the cuts include 26 research analysts.
"IDC will continue to have more than 1,000 research analysts worldwide which is more than any other technology market intelligence and advisory company," IDC said in a statement. The firm added that it still has more analysts than it did a year ago, noting that it hired 50 new analysts in the second half of last year.
IDC's move clearly follows cutbacks at many of the technology companies that pay its bills. Other analysis firms have also been cutting staff, including Gartner which said in January that it was cutting 117 workers worldwide.
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