Hiring Freeze at Microsoft?
Rumors/news reports of a hiring freeze/slowdown at Microsoft, are showing up. Check out http://news.google.com/news?hl=en&ned=& ... ing+freeze
It will be an interesting next 12 months, for the local RE market.
It will be an interesting next 12 months, for the local RE market.
Comments
This crash might be worse than I had imagined.
"This crash might be worse than I had imagined."
It will, as predicted on this board over 2 years ago...
MSFT is one company I doubt will receive a bailout. They simply have too much cash on hand to justify it. If MSFT receives a bailout, so should Warren Buffett.
Since then I've heard twice from different high level execs that we are not immune from what is affecting the economy. And now we have hiring slowdowns.
I'm sure we'll fare better than other companies that don't have so much cash and companies whose recent success is largely due to iFads driven by consumer debt binges. However, immune we are not.
I bet MS eventually stops hiring, starts shedding vendors and contractors, slows wage increases, and cuts back on some benefits. I hope that's all that happens. I really feel like if I can just keep my job I'll come out of this recession/depression much better off.
I completely agree. Its not that Microsoft is a "bad" company with lousy products. Rather, Microsoft will experience a signficiant decline because it will be impacted by the global depression, just like everyone else. PC/server sales are going to slow down dramatically, and Microsoft's revenue is tightly coupled with the sale of new hardware.
I will go further, though, and predict that not only will Microsoft institute hiring freezes, but that by the end of 2009 there will be significant lay-offs. There is simply no way that Microsoft's managers will be able to avoid making significant cost cuts if revenue actually contracts. Shareholders will crucify any executive who maintaines high spending levels even as income declines, and Microsoft's managers are no dummies.
So just what will happen to Puget Sound house prices when Microsoft starts laying off thousands of staff?
Rather than lay-offs, MSFT might decide to use this to gain back the market-share, which they've been losing lately.
No. Microsoft managers will be under INTENSE pressure from shareholders to cut expenses if revenue declines (which it will due to the massive global economic contraction just ahead). Remember that Microsoft really only has a handful of truly profitable businesses. Much of its investment in recent years has been going into divisions that just bleed red. I wouldn't want to be an employee working in one of those groups next year.
So you're thinking the XBox division will be shut down? Or maybe Zune?
Zune I can see going.
This is anecdotal. I was talking with a friend after rowing this morning. He's currently waiting to hear from MS about a position (permanent) that they are re-evaluating, but more importantly he heard from his contacts at MS that they are pulling open permanent positions.
From the email sent out internally by Ballmer they are "strategically evaluating" hiring for open permanent positions. In the meanwhile people who have come back from this weeks conference have said that record amount of work is pushed to contractors.
http://seattletimes.nwsource.com/html/businesstechnology/2008227096_microsofthiring04.html
The information I was told by my friend is from a week and a half ago. So, what's your point?
What is your point?
My point was is contractors got pushed a ton of work just last week. One medium company is billing MS over $85k a week as of last week.
That is what MS has done, is taking back on hiring perms and using contractors for their work.
What is your point?"
What are you talking about? Forge timestamps??? I included a link to Seattle Times article dated 10-4-08 that discussed them re-evaluating its current hiring plans. Anyway, the topic of the discussion is hiring freezes.
cool. companies like volt or other temp agencies may be hiring then.
I was referring to a particular email by Ballmer. You are referring to an article. If you read the email then you would understand what was being talked about.
http://seattletimes.nwsource.com/html/businesstechnology/2008227096_microsofthiring04.html
Originally published Saturday, October 4, 2008 at 12:00 AM
Microsoft hiring plans to face "adjustment" as tech spending slows
Microsoft confirmed Friday it's re-evaluating its current hiring plans and "will make some adjustments as appropriate." Those adjustments are likely to be downward, given Chief Executive Steve Ballmer's recent comments about Microsoft being affected by the economic slowdown.