The BBC have just reported that Microsoft are to cut up to 5,000 jobs. This appears to be a pre-emptive strategy based on forecasted sales over the coming months. Jobs are going from nearly all departments, and I wouldn’t be surprised if bonuses are capped and salaries fixed next. This is becoming a common story, but very uncommon for Microsoft. To quote from the BBC report:
“Richard Williams, an analyst at Cross Research, said: “Microsoft has never had a layoff like this in my knowledge, and it’s sending a signal that the times are definitely changing.””
They are also making cost cutting measures in other areas, and I’d love to know where. They talk about reducing travel expenses, but I wonder if their IT budget is expecting a chop too.