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The Guardian - UK
The Guardian - UK
Technology
Jack Schofield

Mini-Microsoft floats lay-off rumours in Redmond

Mini-Microsoft, one of Microsoft's anonymous and wholly unofficial bloggers, has floated the wholly unofficial rumour that the Redmond giant might be planning to shed some staff:

Rumors. Microsoft layoff and cut-backs and Reduction In Force rumors. That's all I have for you. Rumors and second-hand speculation and the comments left by the fine, good-looking folks who participate in the conversation here. So pour yourself some holiday cheer and dive in.

Mini has long been arguing that Microsoft is overstaffed and inefficient, while hiring has continued at a prodigious rate. This is, of course, a management problem. As he says:

It is absolutely essential that Microsoft steps back and asks, "Whoa, how did we get here and who was leading us?" How did we go on a drunken hiring binge and continue it even though a year ago most of us realized we were dropping into a recession? It's irresponsible leadership. It's especially irresponsible to the people we've hired and to the people incoming with recent offers.

Which is not to say that anyone expects the men at the top to go. The layoffs are likely to focus on the "10%-ers" who, whatever their merits, have been rated lowest in a stack-ranking system.

And the speculation is that while Microsoft has plenty of cash, and is making tons of money, it will want to have some cost-cutting announcements to satisfy Wall Street analysts when it presents its next set of financial results. Mini says:

Come 22 Jan 2009 Microsoft will be asked by the analysts what it is doing to contain costs. And I believe Microsoft will have an answer. I think this is one solution that you don't want to be a part of. I'm all for cutting back, but it should have been done long ago, responsibly, vs. forced upon us. Because I believe when things turn around, groups will be lighting the sparklers and cracking open the Kristal and hiring madly again.

Mini-Microsoft has been saying: "Let's slim down Microsoft into a lean, mean, efficient customer pleasing profit making machine!" But that would require a lot more work than the somewhat crude chops suggested so far.

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