MSNBC denies layoffs
Spokeswoman says company hired
temporary staff during restructuring
September 22, 1997: 6:11 p.m. ET
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Seattle Times
Microsoft Corp.
NEW YORK (CNNfn) - A spokeswoman for
MSNBC denied a report in Monday's Seattle Times
that the fledgling online service is cutting up to 20
percent of its workforce because sponsor Microsoft
Corp. is trying save money.
Debby Fry Wilson said the online service hired
about 40 contract workers temporarily to help launch
its redesigned site. The service laid off only one job
in its Redmond, Wash., newsroom out of a staff of
200, she said.
"There are bodies leaving, but they weren't
permanent staff," Wilson said.
The report in the Times said MSNBC was laying
off up to 50 employees, because Microsoft was
trying to cut costs at many of its Web publishing
businesses.
Wilson also denied that Microsoft's commitment
was waivering. The Seattle newspaper reported that
the site is generating far less advertising revenue than
expected.
"Microsoft is still committed," Wilson said.
There's been no scissors applied to our budgeting."
MSNBC launched in July 1996. In October of
that year, the service began a massive restructuring
project leading to the redesign in September, Wilson
said. About six months ago, MSNBC hired about 40
workers -- from editorial to software development
and production people -- to help in the upgrade.
"They knew they were coming in for a short time,"
Wilson said. "It's very common in the industry for a
launch or redesign to hire temporary workers."
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