Saturday, January 3, 2009

Microsoft Layoff’s – The Good News and the Waiting Game

What’s the difference between a Reduction in Force (RIF) and a Reduction in Approved Headcount?

The latest rumors on Microsoft are seeming to be proving to be untrue. This is good news. As you may have seen from my blog post on January 1st - Welcome to the MotherShip Land – Please Stay.

It seems there will be cost cuts. Which is prudent and not unexpected. Now the waiting game starts. More than likely announcements will be made in Mid-January – prior to the Microsoft earnings announcements.


From CNBC -
Microsoft Plans Cost Cuts, But Huge Layoffs Unlikely
Microsoft will embark on significant cost-cutting as early as this month to offset a global slowdown in sales. But sources told CNBC the cuts will largely be handled through attrition and the non-renewal of contract employees.

So, the difference will be that there may not be a lot of hiring going on – with the rumored exceptions in key roles – and that there will reductions and continued freezes in the approved headcount. However, there will not likely be significant Reductions in Force (RIF’s).

This is a much softer message and one that should not prove to be as devastating to the MotherShip Land and to Seattle as a whole as predicted. The expected impact globally and to the Microsoft partner ecosystem will be reduced too. I for one and glad to hear about this and hope that it turns out to be true.

As always your comments and feedback are greatly appreciated. Please feel free to comment on this blog, tweet about it, Retweet it, and if you are so inclined send me e-mail directly.

Cheers and Happy New Year. Welcome 2009.

1 comment:

Andrew B. Clark said...

Interesting change in phrasing, but either layoffs or "reductions" tend to make communities a little skittish.

Being from Central Iowa, my focus on the upcoming Microsoft development in West Des Moines has been pretty sharp. But with the economy as it is and then the buzz of "reductions," the hopes for expansion and additional local advantages were starting to fade.

Do you have any insight on the development of the new Microsoft offices here? Will the development be stable and as vibrant as first thought, or are we looking at a smaller "reduction" in development?!?

Good to have to you in my twitterstream! Looking to hearing more from you in the MIX!

Keep Cooking!
Andrew B. Clark
--The Brand Chef