By Jo Best, 7 July 2004 13:05
NEWS Microsoft CEO Steve Ballmer has told employees in an email that he wants the company to save $1bn in the coming year and if that means getting rid of company drinks machines, that's a step he's prepared to take.
The memo suggested that the world's biggest software company could save itself hundreds of millions if it revamped its advertising and marketing behaviour. Other cuts have already been decided on, like reducing the discount Microsoft employees get knocked off their prescription drugs.
The bid to reduce costs has also meant that new employees to Microsoft will get less annual leave and less time in which they can take their parental leave. Other, smaller bonuses were removed - the towels disappeared out of the Microsoft locker rooms, for example.
However, in the initial round of cost-cutting, there were promises the company wouldn't take the axe to its free drinks policy. In these tough times, nothing is sacred, it appears.
Ballmer told the Seattle Times: "We're looking to take cost out of the delivery of soda pop. That may mean going from coolers to soda dispensers."
Comments
There are 7 comments. Join the discussion
1. anonymous
What a miserable slob.
They have such a high cash mountain and are still making healthy profit - why not share it with the employees
2. Craig
If any other company were making these kinds of cuts, one would think they were having serious financial problems. Is Microsoft's well drying up?
3. DB
How about giving back the keys to the executive bathroom.
4. Justin
I guess they can apply all the cost savings to patch fixes.
5. anonymous
A company I worked at with a fraction of the number of employees of Microsoft saved half a million pounds a year by ending the supply of free soft drinks. Most people would agree to that being preferable to making people redundant.
6. Anonymous African Coward
Good management principles or just being a cheap-ass? It's your call. I will say though that all the cost-cutting in the world will not help Microsoft if it continues to churn out insecure bloated software. Keeping a beady eye on the bottom line = good; keeping an eagle eye out for speedily plugging all security holes in their products = better.
7. George Gallant
Ballmer can save $1bn for his company by simply ripping out their ERP system and replacing with Oracle E-Business Suite. Case studies on how Oracle saved a $1bn can be found at www.oracle.com - I'm sure Mr Ballmer will find it a compelling read