According to a report made by CNBC, Microsoft is set not to make any layoffs in 2009, but instead embark on a significant cost-cutting initiative, rumoured to begin as early as this month, to offset a slowdown in sales around the world.
Sources, talking to Jim Goldman from CNBC, have also said that Microsoft will cut costs by not renewing contract employees and through “attrition”. It has also laughed off speculation of a layoff that would see 17 percent of Microsoft’s global workforce, or 15,000 employees, as “grossly exaggerated”; adding that “any company not paying careful attention to headcount in this climate like this is nuts.”
It may also follow a employment freeze, like Cisco and Google, which have also put in several cost-cutting measures to make sure they are not forced to start cutting jobs, like Yahoo, HP and Sun Microsystems.
Microsoft is already in a bad beginning, with flagship internet browser, Internet Explorer, continuing to lose market share from open-source rival Mozilla Firefox and Apple’s own Safari Browser. It also had problems around the world with the Zune, its competitor to the popular iPod from Apple, where it would not respond on New Years Eve on 2008.
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