Microsoft plans on laying off 27 more employees by Nov. 1, following announced cuts of 5,000 workers earlier this year. As the economic recession and declines in PC sales continue to take a toll on Microsoft's bottom line, Redmond is hoping that a combination of employee layoffs and a centering of its corporate strategy on products such as Windows 7 and Office 2010 will help it reverse declining revenues. The newly laid-off employees are based in Microsoft's Redmond and Bellevue, Wash., offices.
plans on laying off an additional 27 employees from its Redmond
and Bellevue, Wash.,
locations, with the cuts due to take place Nov. 1. Microsoft made no indication
of which division the cuts would come from.
A Microsoft spokesperson told the Seattle Times that the 27 layoffs had been
enacted "to reduce costs and increase efficiencies," and that
"while job eliminations are always difficult, we are taking these
necessary actions to realign our resources against our top
The 27-employee cut follows on the heels of much larger staff eliminations
earlier in 2009.
On Jan. 22, Microsoft announced plans to lay off up to 5,000 employees, with
the substantial majority of those cuts enacted by the beginning of May.
However, Microsoft CEO Steve Ballmer also
left the door open to future reductions, sending an e-mail to employees that
read in part: "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."
Those job cuts caused something of a public-relations incident in February, after
news leaked that Microsoft had asked laid-off employees to return portions of
their severance checks
, which Redmond
said it overpaid due to an "inadvertent administrative error."
Faced with a backlash, Microsoft
later reversed course and told employees that they could keep the overpayments
which reportedly ranged from a few hundred dollars to around $5,000 per
Although the recent partnership agreement between Microsoft and Yahoo will
result in an unspecified number of jobs being cut by Yahoo-along with other
employees being integrated into Microsoft-there is no indication yet that the
new alliance will end in job cuts on the Microsoft side.
In addition to layoffs, Microsoft
has sought to restructure and consolidate its business practices through the
elimination of various applications and services
. Throughout 2009, Redmond
has eliminated underperforming programs, such as Soapbox-its YouTube competitor-while
also slashing legacy products such as Money and Encarta.
As the economic recession took a toll on the sales of PCs and other devices,
Microsoft's cash flow suffered accordingly; the fourth fiscal quarter of 2009
saw the company report a 17 percent decline in year-over-year revenue, with
earnings of $13.10 billion, roughly $1 billion below Wall Street estimates.
A major part of Microsoft's refocus centers on the new iterations of
platforms such as Windows 7 and Office 2010, both of which need to be
substantial hits with consumers and the enterprise if Microsoft wishes to
reverse its current economic situation.