Microsoft Cuts Jobs And Their Stock Price Goes Up
Microsoft announced that it was cutting 800 more jobs on top of the 5,000 it had already announced earlier this year. They also announced that they had already reached that 5,000 number, although it was supposed to stretch into the middle of 2010.
Once again, though, a company announces layoffs and their stock price went up, in this case going up $1.20 on the day. And, it seems, by hitting their layoff target early, they were able to announce an unexpected nice profit and quarterly sales figure that also helped the stock price go up.
My mind wonder whether this is really good timing, being on the heels of the new release of Windows 7, which is supposed to make everyone forget about Vista (unfortunately, I have Vista, and it’ll be awhile before I upgrade to anything). I see how investors view things, but if I’m the consumer, it makes me wonder if these people have no real confidence in their new product, and it makes me want to go in a different direction and either stick with XP (if I was smart) or finally make the move to an Apple.
I guess these are the things some people consider as good business decisions. It might be, for all we know. Maybe even Microsoft is bloated in areas they’ve now realized they didn’t need so many people. They still employ more than 90,000 people after all. It just seems like strange timing to me.