Microsft Jobs Cut - Maybe

This I'm a bit concerned about.  CNBC is reporting on Microsoft cutting jobs due to the recession.  For a while, it's been rumors.  

However, CNBC did specify that Redmond may find another way to cut costs without laying off workers.  

As a mobile user and looking forward to the next generation of mobile platform and gadgets from Microsoft, I really hope any new development on the mobile front isn't curtailed or benched.

Already Windows Mobile 7 has been pushed back nearly a year and still no sign of the WM 6.5.  Now, we know Balmer has indicated to us not to expect a Zune-phone, I wonder if not job cuts, what can Microsoft afford to cut?  And can Microsoft afford to commit less than 100% of their efforts to fight off their competitors?

If anything, it would be good for Microsoft to say to the shareholders "hey, things are tough.  But we'll get through it.  Cutting back and laying off folks just isn't the answer.  We've got bucks in the bank and we're still building lots of cash.  We'll continue to invest in the future.  Your patience will be rewarded once the global economy gets back on the right footing".

I seem to recall another company making such a declaration in their fourth quarter financial call and it seemed to have gone well with the analysts.  And they too have a lot of cash.  And they too have indicated they were going to innovate their way out of the downturn.

Source:  CNBC

No comments: