Photo: http://www.flickr.com/photos/scobleizer/ / CC BY 2.0

In January 2009, for the first time in its history, Microsoft Corp. announced it would cut some 5,000 jobs over the year as the company witnessed a drastic decline in revenue. The company suffered an 11 percent drop in profit, leaving many Microsoft workers unemployed and in need of short term loans. However, according to several news reports, it appears this trend will only continue for Microsoft.

Microsoft Layoffs – Another 1,000 Down

According to Seattle’s Tech Flash News, Microsoft will lay off almost 1,000 employees as part of its budget cutting. Apparently, the plan to cut 5,000 jobs is not yet over. This wave of job cuts, however, is said to be part of the final phase of the company’s initial plan to cut 5,000 jobs over a period of 18 months. This time around, however, employees at Microsoft will not be as fortunate.

Earlier this year, during Microsoft’s massive layoffs in January and May, laid off employees were able to find other positions within the company. Unfortunately, with limited job openings and slow growth, people will have to go somewhere else to find employment.

Falling Revenues

Last month, Microsoft posted its quarterly revenue at $12.92 billion, down $730 million from the amount reported in its third quarter ending March 31, 2009. With the help of the Windows 7 launch and a steady demand for Xbox, the company says its revenue would have been $14.39 billion and earnings would have been 52 cents, up 8 percent, according to Tech Flash. However, through advance sales and negotiations, the key strategy behind the Windows 7 launch deferred about $1.5 billion in revenue from the quarter. According to accounting rules, customers must first be given an opportunity to actually get the final product they bargained for before the company can recognize the revenue.

The Unemployed – What can you do?

Since the beginning of the recession, the unemployment rate has been climbing significantly. More and more people have fallen in need of short term loans and debt relief. But what else can be done to alleviate the amount of stress and financial worries during such a trying time of need? Save, sacrifice, and safeguard; that’s what.

Microsoft research building in Redmond, Wash. Image from Flickr.

Microsoft confirmed that it’s laying off 800 more employees today. Along with that announcement come a couple of fun facts: not only are they ahead of their June 2010 deadline, they are ahead on numbers of people they planned to lay off!

So I guess laying off 5,800 employees isn’t so hard is it? The company announced in January that it would lay off 5,000 employees by June 2010. So the 800 people who were laid off today can rest assured that by cutting their jobs, Microsoft was going above and beyond the call of duty!

Sorry, I was quick to judge

Of course, I could be being overly cynical here. I suppose finishing the layoffs as soon as possible was perhaps to spare employees the mental anguish of wondering if they’d get the ax. Of course, it’s a little more agonizing to have to look for a job and wonder where your next pay day will come from, but I’m trying to give Microsoft the benefit of the doubt.

As far as laying off an extra 800 employees, it is true that the economy has changed even since Microsoft’s announcement in January. Furthermore, Microsoft didn’t pinky swear that it would only fire 5,000 people, so I guess it’s off the hook.

The buzz online

Comments on a popular Microsoft blog based in Seattle, Wash., say that contract positions for Microsoft have started popping up on Washington’s unemployment web site. Microsoft is based in Redmond, Wash.

One commenter says “it looks to me like Microsoft is simply replacing full-time slots with contractor/vendor positions.” An interesting strategy, and probably not one that laid off employees or their families are too fond of. Other speculators believe that Microsoft will continue to lay people off, even though the company has reached its goal.