No Windows Vista Layoffs for Microsoft

There was the initial 1,000 employees who got the email about their end employment at Microsoft the night before it hit the press. Despite Microsoft’s overall 8 billion USD in assets without debt status, they have to layoff around 5,000 employees in slow profit divisions to prepare themselves for the continued economic slumped. They however; would be hiring an additional 3,000 employees to beef other divisions. It is not yet clear what divisions they would be expanding but one report suggest that it is Search despite layoffs from this division. It is most probably that poor performing employees from this group would be replaced by better performance employees.

Groups that are being layoff include Dynamics CRM, Entertainment & Devices which make Zune & XBox hardware, Online Search, Global Foundation Services which is responsible for MSN and Live. The good news about Windows Vista and Windows 7 is that no job from this department has been cut which means Microsoft is in full swing in this area. Even if there are poor performing employees from Windows, they might just want to keep them to keep the morale high as they rapidly developed the successor to Windows Vista.

Microsoft is just laying off less than 5% of its workforce which is far better than most tech industry companies like Intel who just cut around 2,000 jobs in the Philippines alone earlier this week.