Microsoft layoff 5000 of their worldwide workforce

Due to decreasing sales and looming recession, Microsoft announced today that they are cutting there worldwide workforce by approximately 6%  i.e. 5000 employees out of there 91000 full time employees worldwide.

Microsoft’s earnings fell to US$4.17 billion, or 47 cents a share, from US$4.71 billion, or 50 cents a share, a year ago, missing analyst expectations by a penny a share. The company also said it would cease giving per-share forecasts for the rest of 2009 because of the uncertainty caused by a slumping U.S. and global economy and its shares fell $1.47 to US$17.91.

As per my previous post (Microsoft layoffs coming soon!! while Google layoff staff silently.) I was speculating that Microsoft will cut 10% of there worldwide workforce. Anyways, Microsoft layoffs are not something new. The company is just being quite discreet about it in the past.

Do you think these layoffs will impact Microsoft’s global presence? and there reputation as an employer. Please leave your comments.

Microsoft layoffs coming soon!! while Google layoff staff silently.

Microsoft is gearing up for layoffs due to the current global economic recession, with some speculation suggesting it could go as deep as 10 percent of Microsoft’s 91,000 full-time employees.

Another 9,100 people out of work is not a good thing, no matter how much you may dislike Microsoft. And on the another thought I want to see Microsoft giving Google real competition on the Web, just as I’m glad to see Google forcing Microsoft to innovate on the desktop again. It may well be that Microsoft will be a stronger competitor for pruning its workforce, and I’m a big enough believer in the free market to think that in the long term, the people affected will be better off, too.

But I still don’t want to see Microsoft layoffs. Not this Christmas. Not when the market can’t absorb the displaced employees. Microsofties have families, too.

On another note there were news in the market that Google is silently laying off staff. The workers affected are those employed on contractual terms (and full time basis), and their employment does not come with all the generous benefits other personnel are enjoying.

The layoff was reported to have begun back in August 2008 but it is being done in a ‘silent mode’, as not many people are aware of the development. Under the US law, a company must make its layoff plan public but Google has found a way around it by classifying the contract workers under the ‘operational expenses’. With the classification, the company can hire employees with minimum wage, and provides no medical benefits, no insurance, and no stock options.