NJ5 said:
First of all, this is still a rumor and not confirmed. Second, even if it's true it's very different from some other companies' layoffs. Microsoft's 20-30% profit margins aren't under threat of being reversed into loss margins anytime soon. If these job cuts happen, they're just preemptive, not the symptom of deep trouble in the company. Despite magik10's sarcasm, this is a valid and interesting topic of discussion.
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I agree with a proper analysis but you're often left fighting with Timmy the Tiger who just got home from school and needs to impress you with his understanding of the world and thus my sarcasm.
MS operates at very high margins and while they will not break their record profit numbers from last year, they certainly will not struggle. As with most multi faceted companies, they have projects ongoing that depends on other sectors of the market to perform at a certain level. As these sectors shrink, MS must adjust accordingly. This is on top of the fat trimming that most companies can do when necessary. Many people would be surprised at how "bloated" companies can be when cash flow isnt' a concern and outlook is positive. It would be fiscally irresponsible of any organization in this market to turn a blind eye to the market situation. Especially public companies.
