Microsoft may cut more jobs if economy worsens

To continue to hire and create jobs in line with recovery and growth of the Indian economy.

Global software giant Microsoft today said it might dismiss more employees if economic conditions worsen.

The company plans to dismiss 1 per cent of its 5,000 employees in India, part of a plan to shed around 5,000 jobs globally.

“We are mostly through that process globally. If the economy remains as bad as it is and does not dramatically worsen, we will finish our plans. But if it gets dramatically worse, which I guess is conceivable, we will work on things again,” said Steve Ballmer, CEO, Microsoft.

However, he added, the company would continue to hire and create jobs in line with recovery and growth of the Indian economy. “We are still filling up other jobs. There are areas where we are still adding people,” he said.

Ballmer was speaking at the launch of EduNxt, a virtual university, by Manipal Education, an institution for higher studies. The education institute is partnering with Microsoft, BSNL and netbook original equipment suppliers to provide education through the internet.

On the recent changes in tax laws proposed by US President Barack Obama, Ballmer said: “The US has the highest corporate tax rate in the world. There have been discussions of changes in the tax law in the US, but it is still (only) a proposal so far.” He said the US government would like the country’s firms to be competitive in hiring people, both outside and within the US.

He dismissed as “rumours” the reports that the company plans to acquire German software firm SAP. “That is just a market rumour. I have nothing to say of rumours of acquisitions, positively or negatively,” he said. Microsoft had, for the first time, sold bonds to investors on Monday and raised $3.7 billion. This move sparked the speculation, as the Redmond-based firm has close to $25 billion in cash.

Manipal Education has invested Rs 30 crore in EduNxt so far. The institute’s management expects this investment to go up by three times at maturity. EduNxt will be available for Sikkim Manipal University’s 300,000 distance education students from July 2009.

Said Anand Sudarshan, CEO of Manipal Education: “EduNxt has the potential to change higher education in India. It has the power to scale and provide affordable access for even aspirants in far-flung areas.”