Thursday, May 7, 2009

Microsoft layoff details emerge

[See updates below with clarifications from Microsoft about the impact on these groups and products, which in many cases isn't as severe as originally reported.]

More details are emerging today about the Microsoft groups affected, and spared, in the company's latest round of job cuts. The company isn't going into detail, but blogs and forums are providing plenty of evidence. Layoffs are reported to have taken place in groups including MSN Direct, the Massive in-game advertising unit, and MSDN Magazine, among others.

As noted yesterday, Microsoft's sales, marketing and support operations also appear to be taking a big hit. Mary Jo Foley pieces the evidence together on her ZDNet blog, with excerpts from a memo apparently sent by Kevin Turner, Microsoft's chief operating officer.

Kip Kniskern of LiveSide.net also does some good sleuthing and comes away with these nuggets:

A couple of notable cuts include the entire editorial staffs of MSDN Magazine and Tech-Net magazine (which we were able to corroborate), although it’s not clear if the magazines themselves survived. Also cut were some projects coming out of the Small Business Accelerator program, including MSN Direct (yes it still existed), Response Point (a VoIP for small business program), and the .Net Micro Framework.  It’s unclear from this little bit of information what it will all mean for the existing programs and their support.

Update: Microsoft acknowledges that there were layoffs in the MSN Direct and Response Point groups but says those groups haven't been eliminated. Although the company yesterday declined to identify any groups affected by layoffs, it's now going into more detail to correct the record.

"We will continue to support Response Point version 1.0. and the current OEMs, Service Providers and resellers that are selling it. Customers will continue to be supported through their OEMs," the company said in a statement. "We will also continue to promote the product online and spotlight compatible 3rd party services and add-on products."

In addition, the company said the Response Point team "is evaluating the strategy for the next version of the product and will continue to investigate the opportunity in the small business market."

Microsoft also said the MSN Direct team will "maintain the current service and work on developing a low cost receiver for devices."

The company also acknowledged cuts and major changes in the .NET Micro Framework team. The remaining employees will move to the .NET Framework team, the company said. Microsoft said it will continue to support existing .NET Micro Framework customers under the terms of current agreements, eliminate distribution royalties, make a free porting kit available, and provide access to the underlying source code.

Meanwhile, Microsoft's Massive in-game advertising team "suffered something like 75 percent layoffs," reports Dean Takahashi of VentureBeat, adding that it probably adds up to more than 100 people cut" in that division. Microsoft acquired Massive in 2006.

Update: Microsoft describes the number originally reported by VentureBeat as inaccurate and says the Massive unit actually experienced a headcount reduction of 28 percent.

Earlier: Steve Ballmer's internal email on Microsoft's latest round of layoffs.


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