Microsoft can’t win for losing
Sen. Charles Grassley
Like many companies these days, Microsoft’s embarrassing severance cash advance snafu caused it to miss its earnings forecast. The Windows OS giant has already cut back their workforce by 5,000 – but now they’re under fire for something else.
No, I’m not talking about anti-trust lawsuits from the European Union. It has to do with who was let go.
Jason Mick of InsideTech reports that Republican Sen. Charles Grassley of Iowa (ranking Republican of the Senate Finance Committee) suggested to Microsoft that they “lay off foreigners before Americans.” The company has defied the senator’s request and released a statement to the effect that the cuts “will be entirely unbiased.” While Microsoft is firing, it is also hiring, so it says the net impact will only be 2,000 to 3,000 jobs.
No Bengalis in the corn
Microsoft will cut nearly 5 percent of its total workforce; the number of foreign workers on H1-B visas will remain about the same. Regarding this, Microsoft General Counsel Bradford Smith writes, “The potential to tap into the world’s best minds has long been essential to our success.” According to Smith, approximately 15 percent of the Microsoft workforce consists of H-1B employees.
Sen. Grassley was of course dissatisfied with this. “I’m still left without much information about how Microsoft is ensuring American workers are being protected or specifics of its H-1B visa hiring practices.”
Not racially motivated
Mick indicates that Microsoft has “long championed” the H1-B visa program and has lobbied Congress to allow more foreign workers into America. It says that its H1-B workers are a key to its success. Senator Grassley’s stance – which included a demand that Microsoft CEO Steve Ballmer reveal specific numbers on how many H1-B employees were being retained – is a controversial one.
On one hand, you might assume that there are racial overtones at work. However, it could easily be argued that the most valuable employees (regardless of race) are the ones who will be retained. Where the truth lies may be known only to Microsoft. However, given equal parts, I personally am of a mind that “buying American” is essential.
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Withthe garbage they sell the public and the work they do with the DOD .I agree forieners first. And they get plenty of tax dollars to build businesses in different states. They recieved 5 mill in tax dollars fo 50 jobs in IOWA that hasn’t panned out.
Unless Microsoft accepts bailout money, it should not be an issue.