Thursday, July 17, 2014

Microsoft Layoffs - Two Steps Forward, One Back

For Microsoft, a company of 180,000 to lay off 10% of its workforce is news.  But wait, 12.500 of those 18,000 come from the just-acquired Nokia company.
The cuts will begin with a first wave of 13,000, with the vast majority of employees whose jobs will be eliminated being notified over the next six months, according to a memo from CEO Satya Nadella.
Well, so in essence about 5500 Microsofters are actually out.  some will get rehired, some will start companies.  Those who start companies will benefit the rest of us as opposed to remaining redundant at Microsoft.

What strikes me as Human Resource Madness is to announce the jobs will be eliminated "over the next six months."  No!  You give people their severance checks at 4:59 pm Friday night, tell them to clear out their desks, take away their keys and have security escort them to the door.  Have a nice weekend!

Then at 5:01 pm you send out a press release.  Done!

I though Microsoft had world class human resources folks.

Feel free to forward this by email to three of your friends.


3 comments:

Callum said...

They are preparing the stock market with advance news so shareholders don't get the jitters, sending the stock price down and hurting managerial stakes in the company. It's what is good for management, not necessarily what is good for employee morale.

John Wiley Spiers said...

Jason, surely if they pay all severances (hence my stipulation of the check) they can walk anyone out the door on the spot... and if not, simply tell the affected employee to report to starbuck's for next 60 days... I've fired a lot of people, but maybe the rules have changed since I was called the "axman" back in Ohio way back when...

JOhn

Jason said...

Less than 100 employees, then yes. But since it's more, they have to do the 60 days. But, yes, they can allow employees to stay home and use all accrued leave time if they wish. Don't know how that would work since the majority of them are from Nokia. Depends if their leave time transferred over in the Acquisition. Most likely not, since most companies "clear the books" of those types of liabilities before an acquisition. Most of those Nokia folks probably have very little time accrued.
WARN act was implemented in 1988, so if you were the axman before then, yes, it's changed.