Microsoft Australia has confirmed that it will be reducing its local headcount in accordance with its plan to cut 5000 jobs globally.
"Microsoft Australia today announced a reduction in headcount in line with the global announcement to realign the company's resources and reduce costs," a spokesperson for the company told ZDNet.com.au.
The company said it was a difficult decision that the company did not take lightly, but was necessary in the current climate. Microsoft Australia will work to help affected employees during the transition.
Local operations were left unscathed following Redmond's first round of 1500 jobs cut announced in January. Overnight Redmond announced that 3000 jobs would cut globally; meaning the intended cut of 5000 jobs announced in January would likely almost be complete.
In a memo seen by ZDNet.com.au sister site CNET News, Microsoft CEO Steve Ballmer did not dismiss further job losses. "As we move forward, we will continue to closely monitor the impact of the economic downturn on the company and if necessary, take further actions on our cost structure including additional job eliminations," Ballmer wrote.
Knowing someone who was let go today, all I can say is as usual good people go and dead wood stays because of personal and political relationships with management...very sad day. MSFT has $20b in the bank and profits in the billions but it has actually increased investment in R&D and yet decides to cut lose very very loyal and hard working staff, to pay for impressing Wall Street and exec share value.