updated 07:45 am EST, Thu January 15, 2009
Microsoft Job Cut Rumor 2
Microsoft is considering job cuts after all, according to alleged sources for the Wall Street Journal. While unlikely to be nearly as severe as previously rumored, the cuts would take place across multiple divisions and may occur as early as next week, when the company is already scheduled to deliver its latest quarterly results and may reveal financial conditions that prompt the move.
Company chief Steve Ballmer has publicly mentioned a need for a new "balance" in Microsoft's costs but has downplayed the possibility significant job cuts, saying it's not in the "company culture" to dramatically scale back its operations. The claimed insiders themselves add that plans are still uncertain and may switch to other measures to bring costs in check.
The software developer has never had to undergo major layoff plans in the past and in recent years has hired large numbers of staff as it expands into fields outside of its traditional productivity and Windows platforms, such as its new web interests, the Xbox console line and the Zune. It also has a significant $20 billion in cash reserves that potentially let it absorb short-term losses.