Microsoft Workforce Reduction Hasn't Happened Yet

By: Mary Couchman
Staff Writer
Published: Jan 1, 2009

Microsoft has been the target for rumors and recent gossip as reports suggest it will cut more than 15,000 jobs by January 15. Our sources tell us that the job cuts are with contractors and vendors.

Last week, we reported on a rumor that Microsoft Corp planned to cut jobs by more than 10 percent. This was based on pure speculation and rumors collected from employees who work for the software giant.

Microsoft is indeed trimming costs but there hasn't been any official word on what that might be. There are several companies in the technology sector that have already cut jobs due to the weakening economy. Some of those companies include Sun, Yahoo, Google, Sony and a variety of other companies in the technology industry.

If Microsoft were to cut jobs, it would be no surprise. However, most people find it hard to believe that the company would go that far. One reason being, it would be the first layoff ever for the software giant. Another reason is that Windows 7 and other products such as the new version of Windows Mobile are releasing this year.

Even so, it still comes down to the consumer. Will consumers spend money on upgrades? We all remember the Microsoft Vista horror stories from last year. However, Windows 7 promises to be better, more powerful, and loaded with extra features not found in previous versions of Windows.

The latest rumor is that Microsoft will cut 17 percent of its workforce. That would be approximately 15,000 employees losing their jobs.

Our sources tell us that the software company will cut 180 contractors and vendors, but not employees. We also spoke with a few Microsoft employees and the other thing they learned was that a reorganization has already taken place for some departments. Some divisions were eliminated, sending employees into other groups.

While there has been no official word from Microsoft regarding a 17 percent workforce reduction, it doesn't mean there won't be one. For now, there isn't one and let's hope it stays that way.