Crossgain fires 25 pct of its workforce - WSJ
NEW YORK, Jan 16 2001 (Reuters) - Crossgain Corp, a private Web services 
company started by several Microsoft Corp (NasdaqNM:MSFT - news) veterans, 
fired 25 percent of its workforce on Monday, according the Wall Street 
Journal's online edition on Tuesday. 

Citing people familiar with the matter, the paper said the company fired 20 of 
its 80 workers, in part to mollify the Redmond, Wash.-based software giant. 

All of Crossgain's job cuts were former Microsoft employees, including two 
company founders and the chief executive, the paper said. 

The people fired by Crossgain had been told they may be re-hired after the 
expiration of the non-compete agreements they signed at Microsoft, the paper 
said. 

Microsoft declined to comment, the Journal said. Many Microsoft senior 
executives were angry that Crossgain may be improperly competing with 
Microsoft for employees, the paper said its sources told it. 

The non-compete agreements usually expired after a year, the paper said. 

Microsoft shares closed off $1-1/2 at $53-1/2 in Friday trading on the Nasdaq, 
below their 52-week high of $116-1/16 and above a yearly low of $40-1/4.