Microsoft to lay off 55 Indian employees

Software giant Microsoft plans to lay off 55 Indian employees, around 1 per cent of its 5,500-strong workforce in the country. The move is part of its global plan to shed around 5,000 global jobs, as its net income fell 11 per cent for the quarter ended December 31, 2008.

The plan was announced in January this year and the first round of lay-offs has been completed. The cuts in India are part of the second round.

The company is currently working with the employees concerned to evaluate alternative positions internally, and wherever applicable, look at “mutually favourable disengagement terms”.

In a 10-Q filing to the Securities Exchange Commission on April 23, Microsoft said it had set aside $237 million (around Rs 1,200 crore) for severance for 3,400 laid-off employees, “all of whom are expected to leave the company by June 30, 2010”.

“These adjustments reflect the necessary changes needed to ensure that the right resources are focused on the right priorities,” said a Microsoft India spokesperson. He said the step had nothing to do with US President Barack Obama’s recent proposal to disincentivise American multinational companies transferring jobs and processes to low-cost destinations.

“Microsoft remains committed to India and continues to view it as an opportunity, both from a market and a talent perspective. We will continue to hire and create employment opportunities in line with the recovery and growth of the Indian economy and make strategic investments best suited to the current economic environment,” the spokesperson added.