Layoffs At Microsoft Widely Expected To Be Announced This Week

A year ago this would have seemed impossible: layoffs at Microsoft. Until relatively recently Redmond was saying that it would be able to weather the recession without significant disruption. However cost cutting is now the order of the day and no one appears immune.

The layoff rumors first appeared in December and have steadily resurfaced. One of the early rumors was that as many as 15,000 jobs at Microsoft would be eliminated. However Reuters quotes financial analysts who assert the number will probably half or less than half that figure:

Microsoft Corp is expected to post a quarterly profit that misses its own target and announce thousands of job cuts this week as the global economic slump hurts even the technology industry’s biggest players . . .

“Checks indicate that Microsoft is likely to engage in headcount reductions to the tune of 6,000 to 8,000 employees or 6 percent to 8 percent of its 95,000 workforce,” said McAdams Wright Ragen analyst Sid Parakh. “Our checks also revealed some speculation over the potential for a second round of cuts in some groups sometime later in the year.”

Microsoft is set to announce its fiscal Q2 earnings on Thursday of this week. Many financial analysts believe the job cuts, if they happen, will be discussed, as the paragraph above indicates, on the earnings call. On the same day Google will report 2008 Q4 earnings.

Though no one is certain of exactly how many jobs will be cut at the world’s largest software company, one can be almost 100 percent certain that Microsoft will be asked about its meeting with Yahoo Board Chairman Roy Bostock and whether there’s any prospect of a revived bid for the latter’s search business.

Related Topics: Channel: Industry | Microsoft & Yahoo Search Deal | Microsoft: Business Issues | Microsoft: Employees | Microsoft: General


About The Author: is a Contributing Editor at Search Engine Land. He writes a personal blog Screenwerk, about SoLoMo issues and connecting the dots between online and offline. He also posts at Internet2Go, which is focused on the mobile Internet. Follow him @gsterling.

Connect with the author via: Email | Twitter | Google+ | LinkedIn


Get all the top search stories emailed daily!  


Other ways to share:

Read before commenting! We welcome constructive comments and allow any that meet our common sense criteria. This means being respectful and polite to others. It means providing helpful information that contributes to a story or discussion. It means leaving links only that substantially add further to a discussion. Comments using foul language, being disrespectful to others or otherwise violating what we believe are common sense standards of discussion will be deleted. Comments may also be removed if they are posted from anonymous accounts. You can read more about our comments policy here.

Comments are closed.

Get Our News, Everywhere!

Daily Email:

Follow Search Engine Land on Twitter @sengineland Like Search Engine Land on Facebook Follow Search Engine Land on Google+ Get the Search Engine Land Feed Connect with Search Engine Land on LinkedIn Check out our Tumblr! See us on Pinterest


Click to watch SMX conference video

Join us at one of our SMX or MarTech events:

United States


Australia & China

Learn more about: SMX | MarTech

Free Daily Search News Recap!

SearchCap is a once-per-day newsletter update - sign up below and get the news delivered to you!



Search Engine Land Periodic Table of SEO Success Factors

Get Your Copy
Read The Full SEO Guide