Microsoft announced that 2,100 employees were dismissed today. This is part of a previously announced workforce reduction plan which will see approx. 18,000 employees or 14% of the total workforce shed.
Microsoft has a market cap of $385 billion. Annual revenues of approx. $86 billion and net profits of approx. $22 billion.
Should they just suck it up keep these employees on the payroll, especially during these still hard individual economic times?
Firing people is one of the least evil things a company can do. They didn’t raid the company’s pension fund. They fired people they didn’t feel they needed on staff any more. The original layoffs were announced in a really hamhanded way but that doesn’t make the actual layoffs a moral issue.
If a company needs to keep paying people just to avoid being evil, should they make them come into the office or could they just become mobster style no-show jobs? We know Microsoft has decided they’re not positions they want to fill. They should at least not have to give them expensive computers or cubicles. That’d be adding insult to injury.
I think a more nuanced argument could be made. Microsoft wants to dominate a market and aggressively dominates a market; thus monopolizing it. With that, there could be a logical conclusion that a certain social contract exists for a business on this level. Microsoft gets to be microsoft through the ability to work within the system of society that offers it patent protection; some might say that with that comes a certain responsibility. I am not not necessarily of that belief, I am just presenting a different view of the situation.
I’ll add my voice to the choir that it doesn’t make them evil.
But I will note that laying off employees and then turning around and lobbying for more H1B visas while claiming a shortage of Americans with relevant tech experience smacks of some cognitive dissonance.
Seriously, dude, make a case for wether you think they are evil or not. Do you think they should suck it up and keep people on the payroll if they think they don’t need them?
Those days are long gone for most of their business. I think a case can be made that Microsoft has been stupid in being late to markets and incompetent in moving into new areas, but that isn’t evil.
And they are doing it in a time of high demand for skilled programmers and the like. Much better now than during a crash. Some of the people laid off might find a home in a company with a brighter future.
The OP implies that since a corporation has money, it should keep employees on the payroll even if it has no need for them. IMHO, that is a terribly paternalistic attitude that puts corporations in control and in responsibility for their employees, no matter if the relationship is beneficial.
I think that such an attitude is worse for individual pride to give out charity that to simply allow the employee to move on to a company that actually VALUES his or her contribution.