Recently, I got a thumping for Microsoft 'bashing'. Honestly, I was surprised. Searching my brain I don' think I have uddered a negative opinion about the direction of Redmond since Vista got its first Service Pak. Since I'm now 'doing the time' for an offense I didn't commit, I'm going to get the pleasure of 'the crime', now.
I have been hanging around MS folks since the move from New Mexico up to Seattle. Therefore, I have a number of friends who are or were MS workers, either under contract or Full Time employees. The first round of layoffs seem to have a particular pattern to them. A pattern that looks rather damning to Microsoft.
Based on the chatter of who did and did not get the axe, I'm wondering how many of the employees we're noted for being in the past, the best of the best on the campus? The early look would suggest that most of the fallen come from that group. It may not make sense at first, however, lets look at this a bit closer.
Most smart companies certainly look to hire and retain the best they can find. Microsoft is no exception. Within the company, the top 5% performers are awarded a Gold Star. It is quite a distinction that comes with it a direct money benefit. It shows up as a bonus, given as stock in the company. The small string to the award is it is given out over a five year period.
The first look at the now unemployed seems to have a heavy weighting to those who have a long period of time with the company (therefore the higher salary range). Further, there seems to be a pattern of folks who have earned good bonuses. As these bonuses are paid out over 5 years, they are debit for the balance sheets for Microsoft.
These bonuses are not payable if you don't work for Microsoft. Wouldn't that be a great way to get debit off the books? Lay them off.
A related question I have is: How many H-1B workers got wiped out? Wikipedia states: "The H-1B is a non-immigrant visa in the United States under the Immigration & Nationality Act, section 101(a)(15)(H). It allows U.S. employers to temporarily employ foreign workers in specialty occupations."
Bill Gates was on the news a year ago stating Microsoft couldn't find enough good talent, so the USA needs to up the limit for the body count available under H-1B.
It appears that the majority of folks handed their walking papers we're on the main campus in Redmond. Estimates of the number of H-1B workers there exceed one in four workers. With 900 people getting the axe, it strikes me as strange that I haven't heard of one of them being an H-1B. It doesn't make sense to me that 0% of 1 in 4 are of such critical nature that they avoided the cutbacks.
It is interesting to me that except for Game Testing taking a 30% across the board cut, the folks who got their walking papers have:
A fair number of years with Microsoft.
More senior in the pay grade range.
Yet, all are under age 55.
It is my understanding if you are 55 or over, if the axe falls on you, you get to keep what would be lost to someone under age 55.
Sure enough, I'm not in Human Resources in Microsoft, and I haven't talked to a cast of thousands over the 72 hours since the first round of cuts. With the limited time that has gone by, the pattern doesn't look good.
And for those of you thinking this makes no sense because as I opened with, smart companies like to retain the best performers. Consider this. When your Microsoft, those rules don't have to apply. Most firms have to really work hard to attract the best. Microsoft does not. Having Microsoft on your resume/CV is getting your talents blessed. It wouldn't cause a great deal of disruption to cast off its current best people, that carry for the NASDAQ listed firm no small amount of debt. From a bean-counters standpoint, it would easy for Microsoft to quickly replace its best with a new crop of best. A new crop that would earn less, while dumping tens (hundreds?) of millions of dollars off the cost side of Microsoft's books.
In the coming days, more facts will settle down. If you think that Microsoft wouldn't do something like that because it has to be somehow illegal, think again.
My memory for the list of things Microsoft did that was illegal, And got caught, is pretty long. Examples go all the way back to Stac Electronics. And if you want to stay solely within the narrow discussion of human resources, Washington State handed them a solid beating not long ago. Redmond was using 'temporary' sub-contractors for years. This avoided all employee benefits. And this was not in agreement with the laws of the state. Now benefit-less contractors get dumped after a year, after Olympia, WA busted Microsoft.
The history of Microsoft says this is going to get interesting.
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