Microsoft Lays Off 120 Workers At Bothell Disk Plant
Microsoft Corp. today gave layoff notices to 120 of the 645 workers at its floppy-disk manufacturing plant in Bothell, saying more and more software is being produced on CD-ROMs.
Microsoft spokesman Greg Shaw last week denied reports that a Boston company, Stream International, might buy the Bothell plant from Microsoft - but only if Microsoft reduced its staff.
Shaw said at that time that he would not rule out a deal with Stream that could involve something other than a sale.
One possibility was subcontracting the operation to Stream. Already, Microsoft subcontracts most of its software duplication and packaging.
Asked today if Microsoft might sell the plant or subcontract the operation, Shaw said, "I don't have any information on that."
Stream provides a variety of services such as manufacturing and marketing to software publishers.
Shaw said Microsoft still plans to add 2,000 employees this year to its present work force of about 19,000.
Shaw said today's layoffs stem from declining demand for software on 3.5-inch floppy disks as software is increasingly sold on CD-ROMs and being pre-loaded with new computers.
"There is still plenty of demand there, but that's not where the growth is," he said.
Shaw said the trend away from 3.5-inch disks ultimately will also affect the company's disk-making operations in Ireland and Puerto Rico, though he had no specific figures.
Microsoft said it will try to find new jobs inside the company for the laid-off workers.