Redmond Heading to Red? Microsoft Announces Layoffs and Delays

Dennis Faas's picture

With criticism of its recent security software (OneCare Live) and anti-piracy program (Windows Genuine Advantage) taking its toll, Microsoft is showing fatigue.

Recently, industry insiders are reporting that the Redmond-based company will not only be laying off 214 employees from U.S. sales, but it may also miss shipping Office 2007 on time.

Although this is hardly the first time Microsoft has cut staff, it is remarkable for a company that has routinely increased its manpower by thousands each year.

Reports from inside the company suggest that of the 214 jobs cut, most are corporate account or business-development representatives. As a result of cutting its interest in those who address the market world, Microsoft may see its biggest decline in public-sector relationships.

Axing those who represent the company will also anger that division with the greatest ability to reach the everyday world. Within hours of the announcement, online anonymous posts were being made by employees (or, perhaps former employees) expressing that "they would love to work for Google." (Source:

Talking about being kicked when you're down

Microsoft is also missing the opportunity to redeem itself through the release of a popular and stong product. After it delayed Office 2007 in March to coincide with the Vista launch, Microsoft representatives have recently admitted that Office is behind schedule entirely.

The exact release, which was recently set for January 2007, is now murky. The best reports show an "early 2007" launch for Office, leading critics to ponder the exact status of Vista as well. (Source:

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