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Seattle Bubble Forum Archive • View topic - Microsoft layoffs rumor

Microsoft layoffs rumor

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Re: Microsoft layoffs rumor

Postby jon » Mon Jan 19, 2009 11:05 am

Isn't there a big employee meeting coming up? Those are for revving up all the Developers Developers Developers. It would destroy that meeting to have a big layoff at about the same time.
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Re: Microsoft layoffs rumor

Postby WestSideBilly » Mon Jan 19, 2009 11:36 am

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Re: Microsoft layoffs rumor

Postby deejayoh » Mon Jan 19, 2009 1:29 pm

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Re: Microsoft layoffs rumor

Postby Alan » Mon Jan 19, 2009 1:43 pm

That 10% might have just been in that GM's org.
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Re: Microsoft layoffs rumor

Postby evokanivo » Mon Jan 19, 2009 8:21 pm

5-10% reduction in workforce can happen without layoffs. My team has already reduced by that much simply via not replacing typical losses that are due to attrition. When a team member leaves the company or moves to a different group, we don't replace them.

I'm not a manager, so I don't know the exact numbers in my group, but contractors represent about 5-10% of employees and their contracts have not been renewed. Hence, there are ways to make relatively large cuts without a big to-do or expensive severance packages.
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Re: Microsoft layoffs rumor

Postby rose-colored-coolaid » Mon Jan 19, 2009 8:41 pm

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Re: Microsoft layoffs rumor

Postby jon » Tue Jan 20, 2009 5:19 pm

Maybe he meant a 10% cut relative to previously planned growth:

http://www.techflash.com/Report_Microso ... 74774.html

"The report says the company's real estate and facilities group was working under the assumption "that the company's work force would not grow for the next 2 1/2 years. Beyond then, the planners expected annual growth of 3 percent.""

More details at:

http://seattlepi.nwsource.com/business/ ... ion20.html
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Re: Microsoft layoffs rumor

Postby buyStocks » Wed Jan 21, 2009 2:46 am

hmm,
Lets do the math from that article. Optimal low end of annual revenue was 67.3 billion bucks(earnings of 2.12 a share). Analyst estimating revenue report on thursday will only be 63.76 billion bucks (earnings 1.96 per share). That's a decrease of 3.5 billion bucks. According to the above article, looks like they are cutting costs by about $525 million with decreases real estate and traveling and expansion expenditures. Gee, I wonder what they're gonna do about the other 3 billion bucks in lost revenue (layoffs perhaps...)
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Re: Microsoft layoffs rumor

Postby buyStocks » Wed Jan 21, 2009 3:05 am

We can even take the simple math further. Accoring to this article average compensation of microsoft employee in 2007 is $145,000: http://blog.seattletimes.nwsource.com/b ... erage.html

That seems high to me, so lets make it $110,000. If I cut 9000 microsoft employees I've swiftly dropped cost by a cool billion dollars.
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Re: Microsoft layoffs rumor

Postby rose-colored-coolaid » Wed Jan 21, 2009 7:48 pm

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Re: Microsoft layoffs rumor

Postby The Tim » Thu Jan 22, 2009 6:51 am

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Re: Microsoft layoffs rumor

Postby rose-colored-coolaid » Thu Jan 22, 2009 8:31 am

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