A CNBC report out today appears to put to rest continued rumors of significant Microsoft layoffs coming this month.Report: "Massive layoff" unlikely at Microsoft
In recent weeks, two blogs -- Mini-Microsoft and Fudzilla -- have both reported that Microsoft is preparing to lay off large numbers of employees before the company announces its second quarter earnings on Jan. 22.
Neither blogger quoted inside sources and both later backtracked on their reports.
Fudzilla, for instance, said in its initial report that Microsoft was considering cutting up to 17 percent of its "90,000 employees," a number which seemed to refer to the 95,768 employees directly employed by the company. That number does not include contractors.
In a more recent report, Fudzilla backtracked saying, "There's a big chance that a large chunk of the 17 percent figure could come out of the agency staff." "Agency staff" refers to contractors.
In any case, CNBC reports that while Microsoft will "embark on significant cost-cutting ... the cuts will largely be handled through attrition and the non-renewal of contract employees, rather than through a rumored, sweeping layoff."
From the article:
A Microsoft source tells (CNBC) that the speculation is "grossly exaggerated," but added that "any company not paying careful attention to headcount in a climate like this is nuts" ....
... A source did tell CNBC's Jim Goldman that Microsoft considered a more aggressive strategy, including a significant layoff. Those plans may still be on the table, this source says, but it appears the company will instead rein in costs in other ways.
So what have contractors told the Seattle P-I?
One contractor said that more contract projects than usual are not being renewed and that contract budgets were "being strictly adhered to, which was more of a joke before this recession."
Cutting back on contractors would be similar to what Google has done. Google has not laid off employees but has said it will cut back on the number of contractors it employs.Microsoft is not commenting on an