Net effect of Microsoft cutbacks: 800 fewer employees as of March |
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Net effect of Microsoft cutbacks: 800 fewer employees as of March
Microsoft's tally of direct worldwide employees declined by 800 people between February and March -- the first significant sign of the job cuts announced by the company three months ago. The company employed 95,029 people globally as of last month, compared with 95,830 the month before that, according to company figures.
Most of the net reduction came in the Seattle region, where employment fell to 40,999 people in March -- a decline of 610 people compared with the previous month.
Trying to pull back spending in the face the difficult economy, Microsoft in January said it would cut up to 5,000 jobs over 18 months, starting with an initial wave of 1,400 layoffs. However, the company also said it would simultaneously add 2,000 to 3,000 positions over the same time period in other areas considered strategic to its business.
Despite speculation about further layoffs, the company didn't announce any as part of its quarterly earnings release today.
The initial employee layoffs officially took effect in late March, two months after the layoff announcement, which is why they didn't show up in the company's numbers until now. As part of its earnings today, Microsoft recorded a charge of $290 million for severance related to the initial wave of layoffs and those expected in the coming months.
Microsoft spokesman Lou Gellos provided the numbers this evening. The tallies don't include Microsoft's contract workforce -- people who work at the company through employment agencies.
About Todd Bishop
Todd Bishop is co-founder and managing editor of TechFlash. He has covered Microsoft and the technology industry for more than five years, most recently as a daily newspaper reporter and blogger based in Seattle.
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