MCS Layoffs yesterday

Here's what we know so far about the July 2022 layoffs: so far limited to ISD (Industry Solutions), previously known as MCS (Microsoft Consulting). This is because company wants to "outsource" consulting to vendors / partners instead of doing it in-house... This is why it's so big too.

No other divisions are impacted right now - at least for a while, it all seems to be limited to MCS. But at the same time I am hearing there is a lot of consultants that have been axed, so while this may be a small cut for the company (1%) it is a huge one for MCS which was not that big to begin with. I guess this is all good for Avanade and similar...

There are still hiring freezes in almost all engineering orgs and sub-divisions, I am not sure if anyone else is planning cuts.

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@ymb nails it.

we are back to ground zero, remember early days of avanade - it was owned by accenture and microsoft, we provided the tech knowledge, accenture was on the business side, sales, etc. it worked well, not sure why it went sideways.

mcs never fully worked out.

Well, MCS is probably 15,000+ people worldwide, so not a small number of people.

Microsoft has announced that it would lay off around 1% of its global workforce, currently standing at 180,000 permanent employees, so 1,800 employees.

Even if all those employees were from MCS (won't be the case), that's about 10% of the MCS workforce.

As for "outsourcing" consulting, all those consulting firms with Microsoft departments have always existed and have always been much bigger than MCS. Microsoft for a while had a strategy to grow its in-house consulting business, so I think this is just an opportunity to remove "dead wood" as opposed to really shrink MCS long term.

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MCS Layoffs yesterday

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