14 DAY TRIAL // Microsoft won't be hitting the 100,000-worker milestone in 2009 as the company could have managed, taking into consideration its year-on-year headcount growth. Furthermore, the Redmond company will in fact take drastic measures attempting to minimize the impact of the global economic crisis, and reduce the number of workers throughout this year and even in 2010. On January 22, 2009, the software giant will cut no less than 1,400 jobs, and has planned to do the same with another 3,600 over the next year and a half.
Having managed just a 2% increase in revenue for the second fiscal quarter of 2009, Microsoft is, for the first time, feeling the heavy blow of the worldwide financial tsunami. Speculation has been circulating since the end of 2008, pointing to plans to cut down the number of employees, with the Redmond company failing to either confirm or deny rumors.
However, it appears that layoff reports were indeed accurate, even though the numbers speculated were not on target. In this sense, Microsoft will cut a number of jobs consistently smaller than the one predicted. Estimates indicated that the software giant could have cut as much as 15,000 jobs.
“In light of the further deterioration of global economic conditions, Microsoft announced additional steps to manage costs, including the reduction of headcount-related expenses, vendors and contingent staff, facilities, capital expenditures and marketing. As part of this plan, Microsoft will eliminate up to 5,000 jobs in R&D, marketing, sales, finance, legal, HR, and IT over the next 18 months, including 1,400 jobs today,” Microsoft revealed.
At the end of September 2008, Microsoft stated that it employed 94,286 people worldwide, 56,654 in the U.S. alone (out of which 40,797 in Puget Sound (Washington State)). The company failed to reveal whether it would cut jobs worldwide, or if it would focus on its U.S. or international presence.