Think Microsoft’s layoff figures are big? Look at history and think again

Microsoft is cutting corners in its mobile segment. The company would layoff around 7,800 employees globally. The company said it will restructure its phone hardware business “to better focus and align resources”. Its India born CEO Satya Nadella wrote to employees warning he’ll “make some tough choices in areas where things are not working and solve hard problems in ways that drive customer value.”

While industry experts aren’t surprised as the company has been hinting at cost-cutting for quite a while, naïve onlookers are shocked by the numbers. At a time when one of the top companies in the world suffers such a setback, Business Insider compiles a list of some of the largest layoffs in history. Observe the India connection and prepare to be scandalized.

IBM

Number: 60,000
Date: July 1993

In 1993, when IBM was in deep trouble, one of the best executive of all time Louis V. Gerstner Jr. decided to join as the new CEO. It was also the year of a blood bath of layoffs with the firm deciding to slash 60,000 workers from their payrolls. After Gerstner cut the company to half its size, IBM reportedly saved $4 billion a year. Tell that to the ones who got the pink slips.

Sears Roebuck & Co.

(Image credit: Wikipedia)
Number: 50,000
Date: January 1993

Sears and Kmart kept on cutting jobs for several years. This was before they finally merged in 2005 and saved $500 million a year. The largest of Sears’ layoffs was in 1993 when it asked 50,000 people to go home. Kmart was not far behind. It slashed 35,000 jobs in 2003 as it was about to go bankrupt.

Citigroup

Number: 50,000
Data: November 2008

Citigroup’s cost cutting was a measure to save it from the worldwide credit crunch of 2008. Citi had acquired $20 billion in TARP funds to survive the worst. However, even that turned out to be a paltry amount to pay for the company’s hefty bills. Another India born CEO Vikram Pandit thought the only way stem losses was to cut down on the3,52,000 strong workforce.

US Army

Number: 50,000
Date: September 2011

The only government organization in the list. It is among the largest job cuts from any government department, and the numbers speak for themselves. As you read this, the Army is planning to slash another 40,000 soldiers from its ranks over the next two years. This is likely to affect every wing of the world’s strongest military, both on domestic and international duties.

General Motors

Number: 47,000
Date: February 2009

General Motors laid off 47,000 in 2009 in a bid to compensate for its revenue drop. This was when car sales were affected by the 2008 recession, and the American automotive manufacter was facing stiff competition from Japanese and Korean rivals. Even employees from its esteemed Hummer division were showed the way home.

(Image credit: Indiatimes)