29
JUL
2014

Microsoft All Set For Massive Layoff; Could Telecommuting be an Alternative?

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In its quest to reduce its cost and minimize its organizational structure, the Microsoft might be overlooking the advantages of telecommuting.

While the recent news suggests there is a rise in telecommuting among companies around the world, the news of huge layoff from the Microsoft comes as a surprise. The news are also surprising because Microsoft is one of the top notch companies that had flexible working as a part of its employee’s growth plan.

According to a recently published news article on theverge.com, Microsoft is set to lay off some 18000 of its employees by next year. The huge layoffs will also include the 12,500 employees from the Nokia Mobile division, which the Microsoft took over recently. Of the date the company has 127,104 employees under its umbrella and the downsizing will result in reduction of its workforce by 14%. The move is seen as a method of annual cost savings amounting to $600 million.

Layoffs are common around the world where companies are looking for cost saving method. The job losses not only affect the employees; it also reflects the poor condition of the economy. This step may be seen as a costs saving method for the companies but in reality it will increase the burden on the global economy. More unemployment means more trouble for the entire population of a country. The companies instead of downsizing its workforce for sustaining their organizational costs must look for an alternative that is more advantageous and reliable. Few years back, Microsoft took the initiation of introducing flexible working which was not only a way to increase productivity among its employees it also helped the company cut down on some of its costs.

Allowing employees to telecommute means companies reduce their expenditure on real estate, office space, office supplies, electricity bills and cost of commuting among many other things, to considerable amount. Besides, the massive layoffs from the Microsoft will also mean they will be losing their talent pool and that in other ways is a biggest disadvantage of this decision. This truth stands for many other companies going through the layoffs as well. The employees who are set to lose their job will be hired by other companies who will definitely benefit from the highly talented ex-employees from the Microsoft. In its memo, the CEO of the Microsoft, Satya Nadella, had expressed desire to work with a leaner organization, relying totally on the stellar employees and contract agencies who supply vendors. This is a huge risk the company might be taking, since lack of talented software engineers can put the company behind other technology companies who might take up the talent it is deciding to layoff.

Telecommuting is an alternative to huge layoffs since it not only provides flexible working to the employees it will help companies reduce its costs until such times the company recovers from the financial burden. Besides, working for reduced salary is more acceptable than fulltime unemployment especially during this global economic crisis. The biggest advantage of allowing employees to telecommute is that the companies can retain their talent pool. Online job source such as Goemployed is a perfect platform that enables companies to hire talented off site employees and also helps work-from-home job seekers to find the right jobs.

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