Microsoft is contemplating significant layoffs across various departments that could be announced as early as next week, the Wall Street Journal reported on Wednesday.
The publication’s online edition stated that the software giant from Redmond, Washington, is "seriously considering a significant reduction in its workforce." Citing sources familiar with the plans, WSJ reported that Microsoft is "considering layoffs in various departments," calling it a "rare occurrence for the world’s largest software company." "However, the plans for cuts are still in development, and Microsoft could conclude this by finding alternative cost-cutting methods," WSJ quoted an unnamed source. According to the newspaper, the scope of potential job cuts "is likely to be much smaller than the 15,000 that have been discussed in recent weeks." Microsoft CEO Steve Ballmer declined to say in a conversation with WSJ last week whether the company plans layoffs, although he stated that the economic slowdown has forced them to seriously consider cost-cutting moves.
"We are looking for the right balance," Ballmer said. "When we find it, we will certainly announce it." Ballmer stated that large job cuts are unlikely. "That is not the culture of our company," he said. WSJ reported that Microsoft, which employed 91,000 workers at the end of June, could announce job cuts along with its financial results report on January 22. The software giant has already stated that it cannot sustain growth of up to 15 percent over the last two fiscal years with a weak economy. The slowdown in computer sales is also affecting Microsoft, and research firm Gartner reported on Wednesday that worldwide personal computer sales grew by only 1.1 percent in the fourth quarter of 2008 compared to the previous year, the lowest growth rate in the industry since 2002. (H)
