Microsoft exceeds goal of 5000 layoffs

Securities and Exchange Commission shows software giant will eliminate 5000 jobs by June this year

Microsoft has more than made good on its plan from a year ago to eliminate 5,000 positions by the middle of June 2010, the company reported as part of its quarterly 10Q filing with the Securities and Exchange Commission.

Microsoft reported that its head count reduction since January 2009 now stands at 5,300. The original plan for mass layoffs, the first in the company's history, was put forth in January 2009 by CEO Steve Ballmer. 

The staff reductions include 800 positions that were eliminated in Microsoft's fiscal second quarter that ended Dec. 31, 2009, according the 10Q filing. The company reported that it paid out $US59 million in severance associated with those layoffs.

While not part of the position cutdown, among those leaving in the second quarter was Chris Liddell, who resigned as CFO. His departure is of note because the 10Q filing includes a copy of his lengthy resignation agreement, which promises to pay him nearly $2 million by the end of March.

Liddell received a payment of $950,000 on Dec. 31 and will get another $950,000 on March 31. Terms of the deal include provisions barring him from talking to the media or blogging without the approval of Lisa Brummel, the head of Microsoft's human resources department. He also agreed that he could never again be employed by Microsoft.

The staff reductions began in January 2009 when Microsoft cut 1,400 employees in a move that shocked many inside the company even though rumors had been flying for months. It was the first time in its history that Microsoft had made wholesale cuts across the company.

At the time, Ballmer said staff cuts would continue over an 18-month period ending on June 30, 2010, and could go as high as 5,000. With five months left until that deadline, Microsoft has exceeded Ballmer's prediction by 300.

The results of those layoffs can be seen throughout the company's 10Q filing as many divisions reported that earnings were helped by decreased head count-related expenses. For example, Microsoft's Business Division reported that "sales and marketing expenses decreased $262 million or 12%, primarily driven by a decrease in corporate marketing activities and headcount-related costs associated with our corporate sales force."

The layoff numbers come as Microsoft reported a record quarter of revenue totaling $19 billion.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Microsoftlayoffs

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

John Fontana

Network World
Show Comments

Cool Tech

Bang and Olufsen Beosound Stage - Dolby Atmos Soundbar

Learn more >

Toys for Boys

Sony WF-1000XM3 Wireless Noise Cancelling Headphones

Learn more >

Nakamichi Delta 100 3-Way Hi Fi Speaker System

Learn more >

ASUS ROG, ACRONYM partner for Special Edition Zephyrus G14

Learn more >

Family Friendly

Philips Sonicare Diamond Clean 9000 Toothbrush

Learn more >

Mario Kart Live: Home Circuit for Nintendo Switch

Learn more >

Stocking Stuffer

SunnyBunny Snowflakes 20 LED Solar Powered Fairy String

Learn more >

Teac 7 inch Swivel Screen Portable DVD Player

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?