The Redmond giant is forced to trim many jobs in Seattle, affecting people who have small businesses in the area
On Thursday, Microsoft announced that it would send away over 4,000 people from all the company’s departments. It seems that the software giant’s decision not only has affected the ex-employees, but also it has dramatically reduced the revenues of the local businesses that have been relying on the impressive flow of Microsoft workers.
One of the most illustrative examples of the businesses that were affected is the Seattle-based bike shop owned by Matt Chapman. Chapman has been traditionally relying on employees that were coming every summer at Microsoft’s development department in the city and who were given $300 checks from the company in order to provide them with transport means from their residences to work. According to Chapman, while typical workers were happy to get an ordinary bicycle and a helmet, executives were provided with $1599 full carbon fiber racing bikes.
Nonetheless, this is not just an isolated case, as there are many other people who have started business whose revenues were depending mostly on Microsoft’s activity in the city. As an example, many gyms used to be typically filled with the Redmond giant’s workers, so the company’s decision to suddenly cut so many jobs hit them hard.
What is more, even rental and real estate companies now have to deal with the exodus. Sheryl Rodriguez, a long time rental consultant from Redmond, stated that an important fraction of her furniture-rental and relocation business has been sustained by the permanent stream of season workers who have been sent in the area at a steady rate. According to Rodriguez, 30 percent of her business revenue was based on Microsoft’s activity in the area. She also stated that she has observed an overall decline of her business since last November.
Even if through Bill Gates, Microsoft helped the city of Seattle to develop at an impressive rate, especially during the last decade, it is now clear for everyone that the economic crisis is hitting all companies, including the big players.
Microsoft announced that there would be 5,000 jobs cut and another 5,000 contract workers, but the company would hire several thousand other employees, adding up to about 2,000 to 3,000 job cuts overall.
Microsoft has already started to cut costs of all of its departments. Recently, the Redmond giant announced that there will be no more wage increase and moreover, travel costs will be cut by 20 percent, general expenses will be reduced and the current expansion process of its campus will be suspended.
