Microsoft, the technology giant, has announced yesterday its plan to lay off 1200 employees. In an email written and sent by Mr. Steve Ballmer, he has said that the plan is nothing new but had been a part of the plan that was announced in January. He has also specified that the job cuts are planned and executed as a measure to reduce costs and increase the efficiency and speed of the work that is performed.
Global economic growth has affected Microsoft as well. This is the main reason for recession. Mr. Ballmer has mentioned that this is one of the main reasons behind for recession. These job cuts would be the last slot of the 5000 positions that Microsoft had said to cut-off in January. Mr. Lou Gello, the spokesperson of Microsoft, in a discussion with the media has added saying that these job-cuts were distributed across the board at all the locations and not concentrated or targeted upon a particular group or any specific location. According to a magazine report, the recession affected areas at Microsoft are the IT department of Microsoft, marketing department, sales department, MSSn.com, service department and other Microsoft’s online content related websites.
The employees whose job would be cut-off have already been informed and everything is being processed. However, Microsoft has said that the actual job cut-offs would take place only in July first week. Some of the employees have been informed to leave immediately while the payments due are scheduled to be paid through Independence Day.
In a discussion with the media, Mr. Ballmer, the President of Microsoft has said that lying off for more than 18 months would certainly hurt the morale. Mr. Ballmer has mentioned in his mail that, “We are moving quickly to reach this target in response to consistent feedback from our people and business groups that it’s important,”
Various analysts in the field say that the situation has been created not just because of recession but there had been many internal financial issues that had become the cause of the layoffs. So global economical condition is not the sole reason behind. This shows that Microsoft has not earned the funds that it was supposed to be earning.
It is not just the case with Microsoft but many big corporate companies have been facing the same problem of economic instability, job cut-offs and other related issues that are a part of recession. Other than these often spoken issues, the most affected part of such problems is the employees who have been knocked-off from their jobs. Job loss and sudden blockage in their income patterns is creating a lot of other problems eventually leading to unemployment. Hope this issue comes to an end soon bringing back the smile in the faces of all the employers as well as the employees who are waiting for a good word from their employers.