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MS Refuses Request to Cut Foreign Workers First
Jason Mick / DailyTech
March 05, 2009
‘Company says its job cuts are unbiased and will be based on necessity and performance.’ -
After missing its earnings forecasts, Microsoft was forced to make job cuts – 5,000 to be exact – to placate shareholders. The discussion has turned increasingly ugly in past weeks.
First, Sen. Charles Grassley, a senior Republican Senator from Iowa, where Microsoft has a significant presence, wrote the company and suggested that they lay off foreigners before Americans. Then Microsoft revealed that it had paid its fired employees too much severance pay and wanted them to return part of their severance checks. It at last relented after a series of scathing reports in online and print news.
Now Microsoft is back to talking about its job cuts and is taking another controversial stance. It is defying Sen. Grassley’s request and has released a statement to the Senator and the public, informing them that the cuts will be entirely unbiased.
While Microsoft will cut approximately 5 percent of its workforce, it says its number of foreign workers on H1-B visas will remain approximately the same. Microsoft General Counsel Bradford Smith writes, “We do not expect to see a significant change in the proportion of H-1B employees in our workforce following the job reductions. The potential to tap into the world’s best minds has long been essential to our success.”
Sen. Grassley has already gone on record to state his dissatisfaction with Microsoft response. He states, “I’m still left without much information about how Microsoft is ensuring American workers are being protected or specifics of its H-1B visa hiring practices.”
In Mr. Smith’s letter, he says that approximately 15 percent of Microsoft’s workforce consists of H-1B employees – this, and his previous comments seem to indicate that most of the cuts will be coming from Microsoft’s American employees.
Microsoft has long championed the H1-B visa program. It has consistently urged Congress to rethink the H1-B limits and allow more foreign workers into America. It says that its H1-B workers are a key to its success.
While Microsoft is firing some workers, it is also hiring others, so it says the net impact will only be 2,000 to 3,000 fewer jobs.
While Microsoft’s letter certainly provides an enlightening response on the cuts, it falls short of the detailed breakdown of how many H1-B jobs were being cut versus jobs of American citizens, which Sen. Grassley demanded of Microsoft CEO Steve Ballmer. Senator Grassley is the ranking Republican member of the Senate Finance Committee.
© 2009, DailyTech

Taurus
8 months ago
20 comments
I don't see why MS wants to keep importing people from other countries, when the USA has the highest quality technical schools recognized internationally. I say keep it in the country, where they started!
pingsid
8 months ago
6 comments
I totally understand the frustration Americans are feeling right now. I choose not be biased but will let you know that I'm on an H1B and yes from India.
I wouldn't call myself an escapist but circumstances had me come over to the US where the jobs were in 2005 right after my second masters' degree from Germany. The one thing I've learnt in my stay abroad is to enjoy, assimilate and appreciate the culture I'm living in. I do not think its fair for the giver or the taker to argue who needed whom more. Yes I agree that companies have been looking to cut spending and optimize margins and where some see problems other see opportunities. Isn't that what this country is about. This is what attracted me here to the land of opportunity.
I work in the SAP ERP technology sector as a consultant for a big 4. I wouldn't say I came here being super qualified but did put an awe full lot of effort in doing a great job and ensuring client and employer satisfaction. One thing my culture has taught me is to be humble and appreciative of your neighbors which in this country translates to weakness and lack of initiative. All it took was a little effort for me to understand the expectations and measure up to them. It might be harder for others but when you have people here on a temporary basis I think they feel they do not need to change their ways to fit in which I think is awkward for the rest of us.
I think its wrong to generalize 'you type' and be more open. Like some one posted before I too have seen people of different races draw ridiculous salaries for jobs that a 10th grader could handle and some others working harder and longer for lesser pay because they feel that in this country it would pay off some day in some way.
Just something to leave you thinking. When IT cut jobs my automating business processes there were many people complaining. I've seen many people laid off because I did a good job and felt for the people being let go but is it right to blame me. Now the tech jobs are in a similar crisis. What goes around comes around.!! and so does hate.
i have the highest regard for the hard working people of this country. So' lets just not talk the talk, lets walk the walk and see these difficult times through.
gt0520
8 months ago
2 comments
It's about corporate greed, same as with the financial and banking industries, only here...its with MS Corp. Anything to save/make a dollar, even if it means helping to wreck the economy that has made them rich and successful in the first place. I mean really, how much is MS actually saving here.? Now they have to hire expensive attorneys to draft letters and new releases defending their position on the outsourcing of American jobs and overseas hiring practices. In the end, this will cause these hacks more!
3much
8 months ago
374 comments
Knock, knock! Anybody home? Where is everyone? Don't tell me you all have been "outsourced" as opposed to your jobs? Keep the debate fires burning people! Stop slacking :-)
PS: Foreign nationals from surrounding nations, besides India and China, please feel free to jump in.....anytime.
cogliostro
8 months ago
12 comments
Any comments from anyone in India about the benefits of outsourcing are B.S. When Indian banks tried to outsource to China the Indians rioted. They don't believe its good for their own economy, but they'll regurgitate anything that might convince us otherwise.
Deathrow_Nzl
8 months ago
38 comments
Microsoft have a base in New Zealand, Where ever possible of course they will out source to people in other country's for the simple reason they will work for less money. If I take a job in new zealand for example I will get paid in nz $'s say maybe $30 NZD's a hr But if I go to Uk I will get about 30 Pound an hr to do the same job which is about $90 Nzds an hour, The same probably applys to the USA to I would probably get paid twice as much.. & people from countries like India work for even less. So foreign workers will work for less the an American citizen weather they go to the states to work on not..
MurphysLaww
8 months ago
12 comments
So as Microsoft's products seemingly are getting worse and worse, they are still hiring more foreign workers because in their mind, that is working for them. Isn't that something along the lines of the definition of insanity?
Things that make you say Hmmmm.
ralf123
8 months ago
2 comments
A lot of hyperbole here. This issue can be argued till hell freezes over. If you really want to address this issue, get congress to change the law.
aracheb
8 months ago
14 comments
ehhh
so much anger, heheheheheh
maestrodata
1- I'm not indian.
2- I'm already an US citizen, although i came as a sponsored resident.
3- Yes, I'm proud of taking your job and i enjoy it. you know why?
because whenever i feel that I'm staying behind the market i get my ass off the chair and get some book and i get myself updated up to the market request or i try to exceed the market request.
I don't stay in my house or my office, saying o this American took this from me, or this Chinese took this from me. nope i do what i need to do to get more marketable.
and about indian and their country.
1- you didn't fix the situation here in US, the government did it long before you were born, so don't take any credit that doesn't belong to you.
2- India have social issues yes, but is not mainly the civilian fault that they have a corrupted government, and is not obligation of the civilian to stay and fix the problem they may choose to leave if they feel so.
3- Yes is true there are many stupid Indian who don't go to school or college, there are a few other, who don't have the monetary capability or the opportunity to do it, and there are other who just can't cope with the sittuation and decide to be brilliant and exceed, and those are the one who you see here.
3- the same way there are stupid Indian, there is also an abundance of stupid American, for example look in this site; to be more specific in this conversation: We have nourishment of bright people and we have you, who stupidity is equal to the stupidity of 300 very stupid people.
maestrodata
8 months ago
18 comments
There's nothing sick about wanting to take care of my family, and restoring our country. Trickle-down supply-side economics and the greed demonstrated over the past 10 years tells me there are a lot of people out there that have put their priorities on money at all costs, instead of improving our nation as a whole. The government is now the buyer of last resort, the government is now the lender of last resort, and now, the govrnement is the employer of last resort. Soon it will be the health care provider of last resort. This is all because the 'free' market decided to take care of the few who could and not the many who need. I spit on Corporate America for not only letting this happen, but for DELIBERATELY MAKING this happen, along with Congress, who has conspired to reduce our quality of life. For what? A bonus check, and some illusion of granduer. Where will you greedy spend your money? I hope in India where you've sent all our jobs. Go now, just leave and let the rest of clean up your mess.
Möbius_strip
8 months ago
6 comments
Yes, same here, I don't want respond to any comments any more, and don't want participate in this forum anymore because it seems like it's becoming a continuous loop, giving rise to more and more hatred and frustration! It's sad to see people’s thoughts are so full of hatred and anger due to a temporary phase of unavoidable economic slow down. Personally I feel this difficult time will act as a springboard for everyone's success in future where ever we are!
Good luck to all....
Stevenm
8 months ago
10 comments
Maestrodata - You are a sick clueless individual who needs some serious help, judging by the tone and content of your sick comments I can picture a man sitting alone in his room with take out, a computer and a bottle of hand lotion prowling the chat sites in sighting hatred and violence. You are a very angry and frustrated person. I will not respond to any more of your comments because I believe by responding I am giving you a platform to air your sick thoughts.
maestrodata
8 months ago
18 comments
Aracheb, you're too close to the problem. There are others here too that want to stay in denial, they want to believe that 2+2=5 and other silly nonsense.
The fact is, you Indians have no character, you're spineless, weak, and desperate. While you have excelled at going through the motions, you lack any ability to innovate in anything you do. Your culture prevents you from changing anything or defying the norm. If it were not true your country would reform its labor laws, and start taking care of all those poor people, that sea of humanity! Your country seems to have an abundance of people but not intellect. Your wealth is in selling out, short cuts, and running to America, not in improving your society at home. This is a social condition that will prevent your country from doing anything great. The total lack of character found in so many of your people should be obvious to you why your country struggles.
You have much to go home to, and fix. Go back to India, fix the mess there, and then come back to America and hang out here. Shop and spend money, but don't come here demanding work as if you deserve it, or as if we're supposed to just accept you. You deserve nothing from this country. Our own citizens who were born here are the only ones deserving of their country to do something for their own. Outsiders should have the decency and respect to know when the welcome mat is out and when it is not. If you don't understand that, think about how you would feel if I came to your country with the same arrogance so many of you wave around here in the US.
aracheb
8 months ago
14 comments
umm
i see many people here talking about H1B and they are working in Bangladesh!!!
sorry people but for me that does not make any sense. I am a H1B sponsored Immigrant.
People if you don't know the difference between the term Outsourcing and H1B Sponsored Immigrant, stop talking shit.
Let me explain so you people can Understand:
1) outsourcing = i think everybody here know what is outsourcing, so i will skip it.
2) H1B Sponsored Employee or (work Visa ) : A H1B sponsored employee most be paid in accordance to the position that he is working. You can't bring a H1B sponsored employee with the promise that he will be paid ( X ) amount and then pay him less.
2a) You can't bring everybody on a H1B. Because H1B visa are available only for professional
or how the US goverment call it Specialty occupation in one or more of the following field:
architecture, engineering, mathematics, physical sciences, social sciences,
biotechnology, medicine and health, education, law, accounting, business Specialties
and Theology.
the length of the possition have to be either 1 or 2 year and can be extended up to three
three year, after three year the sponsored could opt for Permanent resident base on the
taxed he payed. (ohhh , with the H1B visa, not only the sponsored come, his/her whole
immediate family also receive the privilege).
and HE can't be paid less than what the market stipulate for his possition. Or the business fall under exploitation. And lose the ability to bring any other H1B and can receive a fine from 250,000 up to 500,000 usd.
highguard
8 months ago
18 comments
Harsh Indian,
I hope you will stop posting because you are not making a good case for yourself or your kind. The indians under me infact write better than you and can compose sentences with more clearity as well thought. You dont sound either very smart or someone who went to some nice college where you were schooled in proper english. You are exactly someone who fits the definition of cheap third world country labor.
It also looks like you didnt understand my post completely. The reason most indians are here including at my company is because they work for cheap infact dirt cheap not because of some inherent intellectual poweress. They are also big time ass-kissers, boot-polishers and have total 'Yes Sir' ,mentality.
My level I & II used to be all american people earning twice as much as what they are offering to these H-1b's and the people in Banglore. My company bosses openly admitted that they laid those good people off because they can import people on h-1b's working for half the amount of money, with almost no benefits and are totally subservient. And when they are near their last sixth year of h-1b we will sent them packing and replace them with someone younger. The only reason they have level III american support( few employees at best) is just to show their clients and government that they do still employ americans at Technology posts.
Me and my companions all hold bachelor Engineering degree's to say the least. Some of us have masters too. So we not in any way less qualified than the indians that replaced us just that we more expensive to them and h-1b let them import cheap recyleable indian labor to bypass costs.
This all is an attempt by greedy corporate bosses to increase their own wealth at the expense of lowering american wealth and fundametally risking the prosperous american way of life. H-1 b regulations should be made lot more stricter than they are now. The federal government needs to ensure that any american worker h-1b replacement makes the same salary as well as benefits that his american counterpart did. Otherwise h-1b is just an loophole that greedy company ceo's are exploiting to import cheap labor.