The big news last week was that Microsoft plans to lay off some 5000 employees over an 18-month period (although 1400 layoffs occurred in a single day, last Thursday). That’s not actually as big as it sounds, when you consider that the company is adding some positions simultaneously, meaning that the effective reduction is more like 3000. Out of 94,000 employees worldwide, we’re talking about a 3% reduction. And that’s after several years of double-digit employee growth.
The reason this is newsworthy is that Microsoft hasn’t ever laid off this many people before. I am reminded of when IBM made its first layoffs ever – that was HUGE. The Microsoft layoffs are certainly evidence that the economic downturn is reaching its evil tentacles pretty much everywhere. But keeping the big picture in perspective, Caterpillar today announced today cuts of 20,000 jobs, or about 19% of its workforce. And it hasn’t been growing in recent years like Microsoft has. Caterpillar isn’t just tightening its belt; it’s taking the belt off and selling it on eBay.
Finally, although I would never wish an involuntary layoff on anyone, Microsoft as an organization may very well benefit from some slimming down in the ranks. I have worked with the company occasionally and I have seen inefficiencies that made my head hurt. Peeling off a few layers of bureaucracy could very well help this company, and getting hit with some economic reality might make the company (which has suffered for many years from a touch of “We know what’s best for you” disease) a bit more attentive to its products’ value proposition in the future. Meanwhile, I’m sure all you Faithful Readers will join me in hoping that the laid off workers, at Microsoft and Caterpillar and, well, everywhere, soon find gainful employment elsewhere.
Recent posts:
Windows 7, Get It While It’s Hot
Server 2008 R2 and Live Migration
Hyper-V Management News: SCVMM’s Cool New Features
