Thursday, January 01, 2009

Welcome to the New Year...

There's a stunning amount of media coverage that seems to be focused on how turning the pages of our calendar is going to cure all of our economic ills.

Unfortunately, I think January might just be the rude awakening that we escaped in December. People knew things we're bad in December, but as we enter the new year I think companies are going to go begin implementing a number of new policies that may exacerbate the current weakness.

Case in point:

"Mark January 15 in your calendar: Rumors of layoffs at Microsoft peg that as the day the bad news will come.

The latest to report on the possibility of layoffs at the software giant is the blog Fudzilla, which puts the number of job cuts at 15,000, or nearly 17 percent of Microsoft's worldwide operations. The January 15 date is a week before Microsoft's second-quarter earnings report, scheduled for January 22."

I think Microsoft has become bloated and this is probably a prudent step, but the fact that a tech giant like Microsoft sees enough weakness in the corporate market to layoff 15,000 workers is likely to send chills throughout the economy. If you're a mid-market paper supplier in Utica how do you like your chances of flourishing in '09 when Microsoft is cutting back?

Cheers!

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