Gloom, uncertainty at Microsoft as layoff announcement sinks in |
Connect with TechFlash on our Facebook page for all the latest technology news headlines and commentary, plus information and access to special events, photos from events, promotions and more.
REDMOND -- The morning was appropriately foggy and dark as Microsoft employees came to work today, bracing for details of the unprecedented cutbacks announced by the company before dawn.
The immediate question was how the cuts would affect them, and their product groups. But because the 5,000 layoffs will be staggered over 18 months -- with 1,400 of them coming immediately -- this morning's announcement doesn't end the uncertainty that surrounded the Redmond campus for the past few weeks as layoff rumors circulated.
"There's going to be a lot of anxiety because 1,400 is just the first wave," said one employee from the Server & Tools Division, who asked not to be identified. "The next year and a half, people are going to be on tenterhooks."
Employees arriving at the Overlake Transit Center were greeted by television trucks and photographers dispatched to the scene to cover the story. Although layoffs had been widely rumored, some employees were surprised that the announcement came when it did. Some walked with their heads down, avoiding the cameras, as they went from regional buses to shuttles that took them to their buildings.
"I’m only hearing it from you right now," one employee said when asked for his take on the news.
Waiting for them on their computers and smart phones was an email message from Microsoft Chief Executive Steve Ballmer, explaining the company's rationale for making the cutbacks.
"The decision to eliminate jobs is a very difficult one," Ballmer wrote. "Our people are the foundation of everything we have achieved and we place the highest value on the commitment and hard work that you have dedicated to building this company. But we believe these job eliminations are crucial to our ability to adjust the company’s cost structure so that we have the resources to drive future profitable growth."
The company isn't saying how many of the job cuts will be in the U.S. or the Seattle region. But the U.S. employees whose jobs are among the initial 1,400 cuts are expected to be notified today.
Microsoft regularly conducts employee evaluations to gauge individual performance, but the company declined to say how it will choose whom to lay off, or which product groups will be affected most. Some cuts will be made with an eye toward boosting "efficiencies," while others will reflect the company's "investment priorities," a spokeswoman said.
The company will still be hiring in some areas, such as its Internet search initiative, Ballmer told analysts during a conference call this morning. As a result, the net job loss over the 18 months will be lower, in the range of 2,000 to 3,000 people. Microsoft is separately planning reductions in its contract work force.
Ballmer told employees in his email that some whose jobs were cut should be able to find other positions internally. Unspecified severance and benefits will be paid to those who don't, he wrote.
One employee who arrived at the Transit Center in full bicycling gear was anxious to find out the details. Based on the announcement alone, he explained, it wasn't clear how his group would be affected.
"Before I change out of my bike clothes," he said, "I’m going to check my email.
Todd Bishop contributed to this report.
If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings. By leaving the 'Post to Facebook' box selected, your comment will be published to your Facebook profile in addition to the space below.
Who's creating today's energy efficient buildings? Find out at the BetterBricks Awards, Feb. 16
BetterBricks Awards salute the individuals leading the way for high performance commercial buildings with an emphasis on energy efficiency. Join us as we recognize these standout green building professionals.
Award categories include: Advocate; Architect/Designer; Facility Manager/Operator; and Owner/Developer.
Keynote Speaker: Kevin Kampschroer, Director of U.S. GSA's Office of Federal High Performance Buildings. Kevin leads the U.S. General Services Administration's efforts in building sustainability and accelerating industry adoption of sustainable principles across all aspects of a building's life.
Register here by February 10!
If you are interested in buying a table, email Monica Alquist or call her at 206-876-5404.
The Triple Door Presents: The Atomic Bombshells "J'ADORE!: A Burlesque Valentine"
Seattle's reigning Burlesque super-troupe delivers a gorgeous and glittering VALENTINE featuring some of the Bombshells' most exhilarating acts to date. J'Adore! promises to celebrate l'amour with good humor, style, and a healthy dose of dazzle! Bring a friend, a lover, a family member, or a secret crush, and celebrate with the Valentine's Burlesque spectacular that will leave you shouting: "J'ADORE......The Atomic Bombshells!" The incomparable Jasper McCann emcees with high style and charm.
Please visit www.thetripledoor.net for a full schedule of future performances.
The Triple Door Presents: Bob Mould – See A Little Light: An Evening of Reading and Music
"Bob Mould. Those two words are synonymous with integrity. From Husker Du in the last century to right at this moment, Bob is the real deal, writing and playing music for music's sake. He's a great songwriter and performer. I have been a fan of Bob's for thirty years now with no end in sight." -Henry Rollins
Please visit www.thetripledoor.net for a full schedule of future performances.
Why Choose BDO for your SOC (previously SAS 70) Reports?
BDO’s experience in providing attestation services (SAS 70/SSAE 16, AT 101, AT 201, AT 601, etc.) to a broad range of industries, and our team of skilled professionals distinctly qualifies us to serve as your company’s Service Auditor. By leveraging the BDO global network of control specialists, we are poised to provide global services in more than 1,000 offices and across 119 countries. Many organizations find that investing in reports on controls may result in benefits, including:
• Increased client confidence
• Improved competitive advantage
• Minimization of frequent audits
• Streamlined business processes and controls
• Enhanced risk management
For detailed information contact Paul Martini at pmartini@bdo.com.