Microsoft's ND campus to take small job cuts hit

Katie Hasbargen, Microsoft senior communications manager in Fargo, said a small percentage of workers were told Thursday they were losing their jobs. She would not be specific.

"We're trying really hard to be sensitive to the employees involved," Hasbargen said. "It's a small percentage, but I know it doesn't feel small to the people who are impacted."

Hasbargen said most of the cuts are expected in Redmond, Wash., where the company is based. Microsoft announced the cuts as it reported an 11 percent drop in second-quarter profit.

The Fargo campus had more than 1,000 employees before the layoffs. Hasbargen said she did not know which areas were most affected by the cuts.

"These were not underperforming employees. These are people who were in areas where priorities have changed," Hasbargen said.

Microsoft acquired Fargo's Great Plains Software in 2001, and began producing business and financial software. The Fargo campus has expanded in recent years to handle other operations for the company, including customer support, payroll and information technology.

The campus broke ground on a $35 million expansion in late 2007. The project includes a new 120,000-square-foot building and additions to existing buildings.

"Right now, we know that some construction projects may be impacted, but we're far down the road on ours," Hasbargen said. "As far as we know today, it's business as usual."

The company received a multimillion-dollar tax break from the city for the expansion, after outlining plans to add more than 200 employees in 2009. Hasbargen would not say if those numbers will be affected by Thursday's announcement.

"We are continuing to move forward with growing the business where it makes sense," she said.

Thursday's announcement involved the first large-scale layoffs for Microsoft, which was founded in 1975. When announcing the expansion project in 2007, former Microsoft executive Jeff Raikes said Fargo had talented workers who were making a global impact.

"This location, Fargo, has been great for our company," Raikes said.

Hasbargen said the downturn in the global economy has finally hit home.

"You know, it's a sad day," Hasbargen said. "Microsoft is having to readjust based on the challenges in the economy. We are optimistic and hopeful that business is going to continue to be strong."