Microsoft takeover bid of Yahoo
Hi all,
Having been a casualty of the Amgen layoffs in Oct of last year. Do those of you who read this blog and work for Microsoft think that incorporating Yahoo will mean future layoffs due to consolation? I was working in plant start-up for Immunex in '02 when Amgen brought us out and was told of layoffs back in Seattle. I would hate to see the same thing happen at Microsoft.
Having been a casualty of the Amgen layoffs in Oct of last year. Do those of you who read this blog and work for Microsoft think that incorporating Yahoo will mean future layoffs due to consolation? I was working in plant start-up for Immunex in '02 when Amgen brought us out and was told of layoffs back in Seattle. I would hate to see the same thing happen at Microsoft.
Comments
I wouldn't be so sure of that. I don't really know anything about this buyout, but when two exceptionally large institutions merge, it rarely has as little impact on the employees as everyone here seems to think this buyout will be. A little over 10 years ago, Boeing merged with McDonnell Douglas.
MD was struggling at the time - trying to compete commercially with two other more successful companies. Meanwhile, MD had positioned itself well in markets, where Boeing wanted to be more competitive. The merger looked like Boeing had bought MD, since the new corporation carried the name "The Boeing Company". But ask anyone who worked at Boeing around the time of the merger, and you'll realize it had drastic and significant impact on their job. A large number of Boeing jobs are in California, which were previously MD jobs. Meanwhile, the total employment in the Puget Sound has declined significantly. Likely, the move of Boeing HQ to Chicago also had some of its roots in the merger with MD.
I really think there are major parallels here with the Microsoft/Yahoo merger, but I don't know enough details to state for sure. What I do know, is that MS needs help getting positioned in an existing and sizable market where it is successful but falling behind (like Boeing Defense). Yahoo is a major player in that market (like MD), but is struggling with profitability. The stronger company is looking to buy out the weaker. It's possible that MS might use the opportunity to diversify its location. It'll take years for this to play out fully.
I really wouldn't make any assumptions about employment yet. Except for one thing. The number of employees after a merger is always less than or equal to the number before (for both companies combined).
The merger is not really a reason that you can take comfort in or to sleep better at night.
MS also has campus in the Silicon Valley. If the merge goes through, it does not make sense to open new Yahoo campus here. Maybe only to relocate a bunch of execs, but MS campuses in Bel/Red/Isq will fit them.