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Non-News From Microsoft: More Layoffs–If the Economy Tanks Again

ballmerFile this one under “hard to say it’s news”: Microsoft CEO Steve Ballmer says the company would consider more layoffs–if the economy falls off another cliff.

From The Wall Street Journal:

“Microsoft Corp. may re-evaluate its plans for job cuts, its chief executive said Tuesday, suggesting more reductions could be in store if the U.S. economic downturn worsens.

‘In case the situation gets dramatically worse in the U.S., we will have to rework’ our plan, Chief Executive Steve Ballmer said at a news conference without elaborating.”

Here’s one reason why Ballmer didn’t feel the need to elaborate: He said the exact same thing last week.

Here’s the quote, from a companywide memo distributed when Microsoft (MSFT) announced its second phase of mass layoffs:

“As we move forward, we will continue to closely monitor the impact of the economic downturn on the company and if necessary, take further actions on our cost structure including additional job eliminations.”

To reiterate: Ballmer, whose company has remained dour about the economy even as investors and other forecasters (like Rupert Murdoch) have shown more optimism, refuses to say he’s done firing people for the year. But he’s not saying he will fire more people. My hunch: If you ask him next week, he’ll say the same thing.

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  • The company, like its products is bloated. This is an excellent time to fix that. Companies are much less likely to get EEOC troubles when they are laying off in large numbers. If the company succeeds in competing with Google (or Yahoo, Facebook, etc) they WILL need more people again, but it will be a different type of employee (probably much lower paid) with different skill sets.

    Running an online business is more like work that what Microsoft is used to. I look forward to the day when they figure out that keeping tens of thousands of servers running reliably is a different proposition than issuing a "Gold Master DVD" every three years and sitting back while your VARs, VADS, and Certified Business Partners take all the bullets.
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Peter Kafka has been covering media and technology since 1997, when he joined the staff of Forbes magazine. Most recently, he has been the managing editor of the tech and media Web site, Silicon Alley Insider. Read more »

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