You know it's a de....... re ... recession when big Red is tightening its belt. That's right: the venerable Microsoft Corp is now considering layoffs as one of its cost cutting options.
Currently, the Redmond, Wash-based company employs roughly 94,000 people worldwide, and roughly 56,000 of them in the U.S.
In spite of the economic doldrums, it seems somewhat odd for a company that showed 18 percent revenue growth(to $60.42 billion) and a 26 percent leap in profit (17.7 billion) for the year ended June 30, 2008.
Let's admit that there's likely lots of room for cuts considering the company's pro-employee policy. Few have been laid off in the 20 years I have followed Microsoft. After all, with a growth spiral like Microsoft, how could layoffs be justified in the past?
I am not really sure how it's called for given the company's rocket growth for the last year. I'm sure sales have slowed, yet Microsoft's licensing based financial model is favored by Wall Street for its deferred and predictable revenues stream.
Is there something amiss at Microsoft? Something tucked deeply in the ledger that has executives worried about the company's financial health?
The WSJ cited sources close to the company who also say that other cost cutting measures are being considered. Decision could come within a week, they say. Should be interesting to see what Steve B decides. Fill me in if you know.
