Analysts figure Microsoft (MSFT) will miss on its earnings tomorrow afternoon, posting a profit that fails to meet even its own guidance. These analysts also figure that probably means long-rumoured layoffs will finally come to the Redmond, Wash.-based software giant. The only real debate is over whether Microsoft will cut a big chunk all at once or slowly wheedle away at its workforce with targeted cutbacks and attrition.
McAdams Wright Ragen analyst Sid Parakh told Reuters he sees a big axe dropping:
“Checks indicate that Microsoft is likely to engage in headcount reductions to the tune of 6,000 to 8,000 employees or 6 per cent to 8 per cent of its 95,000 workforce. Our checks also revealed some speculation over the potential for a second round of cuts in some groups sometime later in the year.”
We hope Sid’s right. Nothing destroys morale and evaporates workplace passion like widespread fear over who will be next to go.