Microsoft Completes Layoffs with 3,000 More Cuts

Microsoft has revealed that it will go forward with previous plans to cut a significant portion of its staff. The company has now terminated 5,000 employees since the beginning of the year.

Back in January, Microsoft announced plans to shave off about seventeen per cent of its global workforce. It immediately slashed 1,400 jobs that month, and planned to spread the remaining 3,600 or so over the next 18 months. However, with the recent announcement Microsoft also revealed it had already reached the 5,000 mark -- far ahead of schedule.

No Security for MS Workers

"As we move forward, we will continue to closely monitor the impact of the economic downturn on the company and if necessary, take further actions on our cost structure including additional job eliminations," said Microsoft Chief Executive Steve Ballmer. (Source: cnet.com)

The news is hardly welcome for employees at Microsoft. Even those still employed with the Redmond-based company will have a hard time feeling secure given Ballmer's statement, which leaves the door open to deeper, future cuts as dictated by the global economy. One already senses that Microsoft accelerated its layoffs because the global economy has continued to sputter, showing little rebound since January.

Those workers affected by the cuts include Microsoft employees from around the world. Approximately 150 British workers lost their jobs over the period, totaling about five per cent of the workforce there.

Rehiring Plan Offers Hope

It's not all doom and gloom for employees shown the door -- Microsoft plans to start new initiatives in the near future that could see between two and three thousand new workers hired. A significant number of the 5,000 recently let go could be rehired as part of that plan, although nothing is certain at the moment. The hiring campaign should commence soon, wrapping up sometime around mid-2010.

Wall Street was hardly oblivious to word that Microsoft had completed its cuts, and in turn slashed MS stock 40 cents, down to $19.79. (Source: google.com)