Cost-Cutting in Worldwide Services

The Worldwide Services Group, which oversees consulting, support, and other services, has eliminated 161 positions from Microsoft Consulting Services (MCS) and will move some support call center jobs to India by June 2004. The moves will help Microsoft cut costs in a difficult environment for IT spending.

MCS Cuts Positions

MCS, which has about 1,500 employees worldwide, has eliminated 161 positions in the United States, citing a greater need to focus on multiplatform solutions in vertical markets rather than broad Microsoft-based solutions. The layoffs reflect the fact that companies are looking to do more with their existing infrastructure instead of investing in new implementations of Microsoft-only technology, as CEO Steve Ballmer noted in a recent memo to all employees. Laid-off workers will receive six weeks of pay and may apply for positions elsewhere at Microsoft. Although layoffs of this kind are rarely publicized, Microsoft frequently reduces staff in particular areas as its business priorities change.