Mass Microsoft layoffs unlikely

A new report has dispelled rumours that Microsoft will be laying off a significant portion of its workforce, claiming the company has other cost cutting measures in mind.

Following rumours that Microsoft was considering dismissing thousands of employees, CNBC reports that the company will be reducing its outgoings through attrition and the non-renewal of contract employees, rather than through a rumoured sweeping layoff.”

The broadcaster’s Jim Goldman cited sources within Microsoft, one of whom claimed the speculation surrounding these rumours have been grossly exaggerated”.

According to the report, Microsoft has already initiated cutbacks within its contractors, with The Seattle Times revealing 180 contract workers being informed a month ago that their services would not be renewed.

Joseph Tartakoff, author of the Seattle PI’s Microsoft Blog, has pointed to the two blogs at the centre of these layoff rumours. Both Mini-Microsoft and Fudzilla reported that Microsoft would be initiating mass layoffs, suggesting between ten and 17 per cent of the company’s workforce could be dismissed.

However, both blogs have backtracked on their initial reports, with Fudzilla saying it was likely the 17 per cent would come from Microsoft’s agency staff”, referring to contractors.

CNBC’s source claimed Microsoft had considered a significant layoff and other aggressive strategies. While these plans may still be a possibility, the company is keen to reduce costs in other ways. Its second quarter earnings are due to be announced on January 22nd.