To add to my last comment...

Another quote from another source stated:

Still, a decision to make "across-the-board, announced layoffs" would be unusual for Microsoft, said Directions on Microsoft analyst Rob Helm. Helm said that even following the bursting of the Internet bubble, the company avoided taking the drastic action. "I can't say it will never happen, but it seems unlikely," Helm said.

Helm suggested that rather than layoffs, the company is likely to continue a hiring slowdown, to implement "good attrition" of "low-rated employees," and to cut "marginal products."

Didn't Sony's stock price rise 2.7% just after they announced their cuts?

Some different perspective:

http://www.marketwatch.com/news/story/speculation-about-microsoft-cutbacks-heats/story.aspx?guid=%7B00A0555E%2D2724%2D49E4%2DAA3C%2DB2FAEA98805B%7D&siteid=yhoof

Maybe not layoffs, just providing people with early retirements and reductions in hiring.

I'll go with B.

I think a lot of companies (like the one I work for) are cutting back somewhat unnecisarrily.  Losses haven't happened yet, but I'm assuming that Analysts are predicting possible losses in the future and so they are acting now instead of later.

On one hand thats actually kind of smart and rather unAmerican (IMO the American way is don't bother me with a problem, come back when it's a catastrophie) plan of action for the company, but in the bigger picture of things its like amputating without getting Gane greene (Sp?) yet, and it's no way to help the economy on the whole and prospective buyers, to eliminate their paychecks.

Cuts might boost stock prices, but M$ is extremely profitable, and mssive layoffs play havocwith morale...so it's a double edge sword.  Given that M$ is fighting like crazy against Google for search, a list of competitors for internet portal, and others forgamig, along with the global slowdown,  you don't want people looking over their shoulders for keeping their livelyhood.

oh no doubt.

It would be interesting to see though how much of this rise was due to traders acting on this rumor.

Remember the jump in the NSE after the rumor was leaked that Barak Obama was going to ask that former NSE head to be an advisor?

Rumor can play a big part in trading

That article is total FUD, because of one very simple reason. If company is listed in stock exchange (like MS is), it can't give any information to employees or ANY other than those members who are part of decision making, before it gives public notification of layoffs. Any one who breaks that silence would get heavy penalties.

This would be hilarious. It would mean that MicroSoft held back the announcement until just past Christmas, so they could look better during the holiday boost. Then they fire everybody and coast through the slow seasons, and ... hire them back?

^^
Ballmer behaving so pettily? Naaaaaa, who could think so about him?

Alby_da_Wolf said: ^^ Ballmer behaving so pettily? Naaaaaa, who could think so about him?

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