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post #1 of 19 (permalink) Old 01-02-2009, 10:49 AM Thread Starter
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Rumor: Microsoft to Cut 15,000 Employees this Month

Rumor: Microsoft to Cut 15,000 Employees this Month

According to reports, Microsoft will layoff 17% of its global workforce

Microsoft is one of the biggest and most profitable companies in the technology industry. The company has its hands on many different projects from software to internet search and more. The company is always out to find new methods of making money.

One of its most recent patent applications outlined a method of charging users under a pay-per-use method for computing that would have computers given for free or at a greatly discounted price. Microsoft so far during the global economic crisis has been able to avoid any mass layoffs or restructuring, but according to some reports that may change drastically in a few weeks.

CNET News reports that rumors are circulating that have Microsoft possibly cutting 17% of its global workforce on January 15. If the rumor turns out to be true, Microsoft would be letting go 15,000 people from its 90,000 employee pool.

Earlier rumors had Microsoft laying off a more modest 10% of its workforce. The Microsoft team likely to take the hardest hit according to reports is the MSN search unit. Cuts are likely to come in this unit and other struggling business units.

Microsoft units that are profitable are not likely to see cuts in staff. CNET News quotes industry veteran Henry Blodget saying that. "Unless Microsoft's business has been absolutely crushed in the past two months, there is no reason for the company to suddenly cut this much cost. Microsoft's margins are still fine, and much of its revenue is generated from multi-year contracts."

Blodget does think that there is a potential for restructuring at Microsoft and that any potential restructuring is likely to center around MSN. Blodget says, "The only way we could see Microsoft laying off this many people is if the company decided to eliminate business units. And if Microsoft did decide to restructure its business, it would likely sell rather than shut down divisions, including MSN.”

Microsoft is looking hard at areas where it can make money or save money. Making money is the reason that Microsoft keeps postponing the retirement of Windows XP. XP is huge in the netbook market thanks to the fact that most netbooks won't run Vista and Linux isn't appealing to many customers.

After the long running and ultimately fruitless attempt by Microsoft to purchase Yahoo, many will find it very unlikely that Redmond would suddenly try to sell its MSN unit to Yahoo. Microsoft and many other firms see Internet advertising as the future and removing itself from that market wouldn't make much sense for Microsoft. However, if Blodget is correct and Microsoft gave MSN to Yahoo in exchange for a large part of Yahoo it could potentially pull Yahoo from the brink of collapse and result in a search engine with more draw than Google.

DailyTech - Rumor: Microsoft to Cut 15,000 Employees this Month
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post #2 of 19 (permalink) Old 01-02-2009, 11:48 AM
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Good!!

Hope the entire Development team for Vista get canned.

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post #3 of 19 (permalink) Old 01-02-2009, 11:49 AM
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This story is a contender for 2009's "So Fucking What?" award.
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post #4 of 19 (permalink) Old 01-02-2009, 01:01 PM
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Originally Posted by elau View Post
Good!!

Hope the entire Development team for Vista get canned.
Guillotined would be better.

Recall that earlier generations faced down fascism and communism not just with missiles and tanks, but with sturdy alliances and enduring convictions. They understood that our power alone cannot protect us, nor does it entitle us to do as we please. Instead, they knew that our power grows through its prudent use; our security emanates from the justness of our cause, the force of our example, the tempering qualities of humility and restraint.

-President Barack Obama, 1st Inaugural address
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post #5 of 19 (permalink) Old 01-02-2009, 01:28 PM
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Back to basics, kill off the Zune/Kune/Xune/Xnb/Xenx/Xbx
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post #6 of 19 (permalink) Old 01-02-2009, 03:47 PM
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Microsoft is the new Polaroid.

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post #7 of 19 (permalink) Old 01-04-2009, 03:46 PM
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I just talked to one of the gaming product managers at Xbox and they seem pretty secure.

Zune, on the other hand might not recover from their Z2K9 problem last week.

OS growth will slow down as corporate desktops sales slow down this year. If folks decide that they have enough power to maintain, there is no logical reason to buy up. That will slow down OS sales.

As for Vista, not sure what the real issues are, if you have a reasonably current box, Vista runs fine. I have it on a desktop right next to a XP Pro box and they are, with minimal exception interchangeable.

Only lockup I have had in the past year tracked back to the processor on a Sony desktop, not the OS. Now that the Sony is gone and a hand built box is in place, it runs quicker, with zero issues.

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post #8 of 19 (permalink) Old 01-04-2009, 05:03 PM
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^ The Zune is an irrelevant piece of technology and should die.

The XBOX is relevant, makes money, and will undoubtedly continue to live.

Vista isn't compelling enough to warrant the headache of upgrading; multiple OS standards are expensive and difficult for corporations to support; corporations account for the vast majority of Microsoft OS licenses; Vista to this day has unresolved compatibility problems experienced by shrink-wrapped and custom-developed software alike (64-bit is where you get the real benefit of Vista, and that's where lots of problems still hide - turn off 64-bit and you have a clunky version of XP).

Hope that helps...
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post #9 of 19 (permalink) Old 01-04-2009, 06:10 PM
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^ The Zune is an irrelevant piece of technology and should die.

The XBOX is relevant, makes money, and will undoubtedly continue to live.

Vista isn't compelling enough to warrant the headache of upgrading; multiple OS standards are expensive and difficult for corporations to support; corporations account for the vast majority of Microsoft OS licenses; Vista to this day has unresolved compatibility problems experienced by shrink-wrapped and custom-developed software alike (64-bit is where you get the real benefit of Vista, and that's where lots of problems still hide - turn off 64-bit and you have a clunky version of XP).

Hope that helps...
Need better designed 64bit applications. When I see well designed Digital Library software from Carnegie Mellon or IBM's Watson Research Lab [or STL], it works like a charm. When playing with 600GB databases on a PC, it works fine. When manipulating data from a 400TB it works fine.

I agree that there is an odd mix of folks who can/should use it. Home PCs can do fine with it if the user doesn't wander through the freeware emporium too much and big apps use it well. But folks in the middle are just fine with XP at this point. As apps clean up, and the user base comes up to a natural minimum any last Vista problems will go away.

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post #10 of 19 (permalink) Old 01-04-2009, 06:36 PM
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^ The release of Windows 7 is awaited with the same kind of anticipation and hope surrounding Obama.

And, it's the legacy 16 / 32 bit stuff that is causing problems in 64-bit Vista.
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