layoffs

Digg to cut workforce 10%, hire new sales team

Digg CEO Jay Adelson on Thursday morning is announcing that the social media site is laying off a "very small" portion of its workforce, but will also be hiring a new direct sales force and head of sales to drive the company to profitability this year.

The overall job cuts at the 75-person company will be "microscopic in size," Adelson said to me, later confirming a figure of "about 10 percent." He reiterated that Digg this year is focusing on profitability and growth, and for the first time is building out its own advertising support structure, "which we've never really focused on before." Adelson posted a brief item about the news on the Digg blog.

The partnership Digg has with Microsoft to sell standard advertising units will continue. But Digg will be rolling out higher-profile advertising programs, and features on the site to support them, that his internal sales force will be pitching. He pointed to Digg Dialogg as an example of a vehicle that could be sponsored by a higher-profile advertising program.

It's a difficult time for all media companies, of course, but Adelson says that Digg has not seen any CPM erosion--the price they get for the ads on the site--and that the Microsoft is doing well for the company.

Even though Digg has "multiple years" of cash on hand for operating expenses at the current burn rate, Adelson said, it's a brutal economy today. "It's true we have cash in the bank, but getting to profitability makes more sense to us." Sounding like almost every other Web start-up CEO on the state of his business today, he continued, "If things don't get worse this year, if we get to the second or third quarter and things look good, I can bring some of that talent back in. But if we go in the other direction, that's not a burn rate we can maintain. I'd rather be in front."

The company raised new capital and doubled in size in 2008.

Adelson says Digg's engineering and core development group won't be hit by the layoffs. The cuts will come in areas "not core to our function. We'll be shifting some of that cost to a sales force." … Read more

Ballmer's e-mail to employees regarding layoffs

From: Steve Ballmer Sent: Thursday, January 22, 2009 6:07 AM Subject: Realigning Resources and Reducing Costs

In response to the realities of a deteriorating economy, we're taking important steps to realign Microsoft's business. I want to tell you about what we're doing and why.

Today we announced second quarter revenue of $16.6 billion. This number is an increase of just 2 percent compared with the second quarter of last year and it is approximately $900 million below our earlier expectations.

The fact that we are growing at all during the worst recession in two generations … Read more

Microsoft, eBay drag down market

Update at 9:15 a.m. PST: Prices of companies' shares and market activity updated. Update at 8:55 a.m. PST: Research from eBay analysts added. Correction at 6:33 a.m. PST: Microsoft's year-over-year revenue rose 2 percent.

Bellwether tech stocks Microsoft and eBay pulled down the broader market Thursday, after they both reported quarterly earnings that apparently gave investors an unpleasant jolt.

Their results smothered hopes for a turnaround following Apple's impressive quarterly results and those of IBM.

By 9:15 a.m. PST, Microsoft shares had fallen 10 percent to $17.40. Earlier in … Read more

Microsoft cutting 5,000 jobs on weak results

Microsoft said Thursday its sales and earnings for the December quarter fell well below expectations and announced a series of cost-cutting moves, including its first-ever companywide layoffs.

The software maker said it will cut up to 5,000 jobs, or 5 percent of its workforce, over the next 18 months. About 1,400 jobs were eliminated immediately. The software maker is also paring other expenses, such as delaying salary increases and cutting back on vendors and contractors.

Amid slow PC sales, revenue for the quarter came in at $16.63 billion for its fiscal second quarter that ended December 31, … Read more

PC sales slump to bite even Microsoft

With the PC market tanking along with the rest of the economy, Microsoft is seen as unlikely to be able to live up to the financial forecast it issued in October.

The company is set to release its quarterly earnings after the markets close on Thursday.

In a further sign of just how rough the economy is, Microsoft is also expected to announce shortly its plans for a significant, companywide layoffs. Although Microsoft has cut jobs in a particular unit or location in the past, it has managed to navigate through all past downturns without having to resort to such … Read more

Sony warns of first loss in 14 years

Consumer electronics giant Sony warned Thursday that it will record a $2.9 billion operating loss this year, its first annual loss in 14 years.

The company, which blamed the loss on sliding demand for its products and a stronger yen, said it will detail plans to restructure late Thursday, according to a Reuters report. The warning follows reports Wednesday that Sony plans to close two television factories in Japan and shed 2,000 jobs.

Sony also said it expects to post a net loss of $1.65 billion in the fiscal year ending March 31. In October, the company … Read more

Microsoft's internal org chart down amid layoff chatter

With rumors of layoffs swirling, some Microsoft workers were dismayed on Wednesday to discover that the company's online internal organizational chart tool is scheduled to be down until Friday.

According to several online postings on Wednesday, those using the tool, known as Headtrax, got the following message:

"The Headtrax application is unavailable at this time and is expected to be back up again on January 23rd."

Workers were not reassured by the message, given that Microsoft announces its quarterly earnings on Thursday and is expected by many to soon detail the company's first-ever companywide layoffs. (It … Read more

Report: Sony to cut 2,000 jobs, shutter two Japan TV factories

Sony plans to close two television factories and shed 2,000 jobs in its home country of Japan, according to a Bloomberg report Wednesday.

The report says CEO Sir Howard Stringer will make the announcement in a news conference but doesn't say when.

When asked for confirmation of the planned cuts, a Sony representative told CNET News that the company has nothing new to announce.

Now, that can be interpreted many ways, but here's what's likely going on: While Sony may very well close some factories in Japan, it's probably not a new round of cuts, … Read more

Awaiting Microsoft's cuts

The uncertainty surrounding Microsoft's cost-cutting plan is likely to last only another day, until the software maker announces earnings Thursday.

That's when many people expect the company will detail its plans, which will likely include the company's first-ever companywide layoffs.

In the absence of hard facts, the guessing game goes on. I was fond of Todd Bishop's post at TechFlash on "Five things we really wouldn't miss" if Microsoft cut them.

Zune hardware tops the list, which also includes Microsoft's little-known YouTube rival Soapbox, and its search business. Although it seems very … Read more

Yahoo layoffs to spread to France

France isn't immune to the layoffs that Yahoo began last year.

PaidContent.org reported Tuesday that 52 of the country's 251 employees will lose their jobs, citing Agence France-Presse.

Yahoo spokesman Brad Williams said employees in France will be affected by the Yahoo layoff that began in December, cutting 10 percent of staff worldwide, or 1,520 people. Because of different regulations, the French cuts are taking place later than those in the United States, and employees haven't yet been notified.

Williams declined to comment on the number who will be losing jobs or the timing of … Read more