Consulting services in our line of business was hit 20% in North and South America. Billable resources on active billable projects were RIFed. Not good for customer experience.
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It's a standard move to make the wall streets happy and keep or move the stock price. Given the "Lord of the Fly's" culture, this move is never done very strategically, often leaving behind dumb and dumber talentless GM's that have been riding the coattails of others for their entire careers.
As one of the insiders said, there is no logic nor economic reason for some of the layoff.
Makes me question the intelligence of Microsoft as a business entity.
If they are using an algorithm for the lay off, then this is a mother of all irony: a tech monster who doesn't even get their algorithm right.
My guess is that the fresh graduates hired out of college at a third or quarter of the salary is the cost cutting justification. One senior consultant = 3 college hires. College hires need lots of attention, training and coaching
Also heard from friends that active billable consultants on premium accounts were dropped affecting deliverables. Well you got what you sow. No action without consequences
That's the part that I never understood - why do they lay off people that are staffed on billable projects and have a fairly good chance of being extended or staffed on a different client/project.
I've seen MCS do this way too many times - I've spent almost a decade in consulting, worked for three fairly large systems integrators - I've never heard about billable resources being cut (aside from Microsoft)...
I am truly puzzled...