Microsoft exploring significant job cuts. (finance, profit, stock market, startup)

[Radnor]

Originally Posted by coldbliss

Gee, how did VISTA work out for MS? I don't have much faith in the upcoming Windows 7 system either.

The launch of Vista was more or less a complete failure in the eyes of the public. However, Vista SP1 is amazingly solid in comparison. Windows 7 is shaping up to be what Vista should of been, and for a beta product is surprisingly stable. I'm currently using it with no problems whatsoever. Let's hope that the Windows 7 team isn't hurt too bad by the layoffs.

Windows 7 install roundup - Engadget

[seattlenextyear]

LINUX RULES!!!!


Ha, just kidding. It doesn't.

[mikec34]

Originally Posted by coldbliss

I am trying to think what I like about Microsoft products?

The operating systems? There are millions of consumers who will pay $500-$1,000 MORE for a Mac just to avoid dealing with the terrible MS OS. Worms and viruses continue to plague the MS operating systems. Gee, how did VISTA work out for MS? I don't have much faith in the upcoming Windows 7 system either.

MS Word? Corel's Word Perfect has much more user-friendly, word-processing features. Seriously, WP totally rocks.

MS PowerPoint? You got me there. Corel's Quattro is garbage.

XBox360? Ninento Wii is cleaning Microsoft's clock with the competing game systems. And despite Sony's botched roll out of Play Station 3, the quality of the hardware is far superior than XBox360. In fact, there are numerous reports of glitches galore and recalls with the XBox. Only if Sony would wise up and drop the prices on the 80 GB consoles, you would see sales of the XBOX360 really decline.

The Zune? The Edsel of MP3 players. LMAO...no competition to the iPod whatsoever. But I think the Zune would make an awesome collector's item for infamous consumer goods that never had much fortune in the market place.

On the consumer side of things, Microsoft is becoming a big failure. They will have to rely on more sales of business server systems and Office Suite packages for the work place.

I don't think Microsoft nation appreciates how realistic those "I am a Mac and I am a PC" ads really appear. Those ads could have a permanent devasting effect on the image of Microsoft.

Wow, such pessimism for the largest software company in the world.

An AP article today said MS grew 2.x percent for 4th quarter(?) and that was below expectation, so I'd say they are doing pretty good. Sun Microsystems dropped 20% of their employees sometime in novemeber or december.

It's quite funny to watch Mac commerciaials because they never show their product, just some jib-jab. Those "I"m a PC", etc, were started by Macintrash and they were finished by PC! Much of the world continues to use PC with Windows and Macintrash can only compete in the MP3 market. I used to be a linux guy, but now love Vista and C#, and have always prayed for the day Apple would just die.


Funny how Apple has to convert to a linux kernel and make sure it runs Microsoft Office and dual boot with Windows XP. What a joke. MS will never try to stamp them out completely, though, because our useless congress will be sure to break up Microsoft into so many fragments we'll have to wathc India or China deveop mass software. Groovy indeed.

[70Ford]

Microsoft is eliminating as many as 5,000 jobs and 5,000 or more contract workers. It said 1,400 jobs would be cut yesterday, most in the Seattle area, where it employs 41,480. The company says it will still add workers in some areas for a net reduction of 2,000 to 3,000 jobs

In an e-mailed statement, Microsoft said cuts to employee benefits are not part of the current round of cost reductions. In addition to job cuts, Microsoft is freezing salaries, paring travel costs 20 percent, delaying parts of its campus expansion and reducing spending with vendors.

Software had been one of the few industries adding jobs in Washington state.

After outperforming the U.S. economy much of last year, the state’s unemployment rate hit 7.1 percent in December, nearly matching the 7.2 percent national rate, the state Employment Security Department said this week. The increase from 6.4 percent in November was the largest monthly jump since 1976.

Bloomberg.com: Exclusive

[coldbliss]

Yeah, I just think Microsoft is the General Motors of the IT/software world. It's BIG. The company has the highest sales numbers with its consumer and business software. God knows how much money MS gets from the computer manufacturers with the Windows licensing agreements.

However...

Just like General Motors, the largess doesn't translate into innovative products that "WOW" the market. For decades, GM had the highest automobile sales worldwide until 2008. The same thing will happen to MS when businesses realize that the software products for PCs and servers are not good enough.

It would be nice if Apple would allow its OS XX system to be licensed on HP, Dell, or Sony hardware equipment. But then, there would no reason to purchase a MacIntosh desktop or laptop. The dudes from Apple are greediest bastards in the business.

On last note about the XBOX360 vs PS3. The PS3 system console was the most incompetent, clumsy product rollout in recent memory. Sony really dropped the ball in so many areas with PS3. Remember what happened with Sega and the Dreamcast system? Sega botched everything along the way...including a bad pricing model and not partnering with enough game software companies. The PS3 could be Sony's swan song in the video game console business. Thanks to Sony's incredible disorganization in the video gaming business, MS found success with XBOX.

Originally Posted by toughguy

I think you are overstating Microsoft's weaknesses in the consumer market. Yes, Apple market share is on the rise, but they aren't competitive in the budget/mid-range pc market, which is vastly larger than the high end market. We will have to see how Windows 7 is received, but so far most of the tech pundits are cautiously optimistic about it.

No one is seriously challenging the dominance of Word and the rest of the Office suite. Corel? LOL get outta here...Even OpenOffice, the $0.00 open-source competitor, is not really gaining any kind of traction.

Also, despite the hardware failures of the Xbox 360, it's still outselling the PS3 handily.

Hardware Comparison Charts | VG Chartz.com - Video Game Sales Charts - Nintendo, Sony, Microsoft, Wii, PS3, Xbox360, DS, PSP, PC

Sony cannot afford to reduce the cost of their console, because their electronic entertainment division is already bleeding cash profusely, and they are in the midst of a profound corporate restructure and massive layoffs. They can't score third party console exclusives to save their lives, and their 9 year old console-that-just-wont-die the PS2 is still cannibalizing PS3 sales. The PS3 could yet overtake the Xbox in sales, but the trends say otherwise. The Nintendo Wii is selling like gangbusters, but I think that it is carving out a new casual market that Sony and Microsoft are not really trying to compete in at the moment. I bought a Wii the day it came out, and recently purchased an xbox 360 a few months ago. The Wii has been sitting there collecting dust, I have literally not turned it on once since purchasing the Xbox. The reason? The Wii has a few good games and tons of terrible games. Most of the games appeal to much older non-traditional gamers and small children. If Microsoft and Sony went after Nintendo in the casual game market, I don't think Nintendo would be enjoying the same meteoric success it is maintaining currently.

You are correct about The Zune vs. iPod debate, which is pretty much over. No one at the moment is going to take the iPod's crown. The Zune is actually on par with the iPod as far as features and useability, but it just cannot overcome the Apple marketing machine.

Overall I think a lot of people have animosity towards MS and perceive every negative news item as the death of Microsoft. I understand they face serious threats and no company lasts forever, but I don't think they are anywhere close to the brink of collapse like many people are saying.

[SYS]

I don't know whether the following has any connection in their decision to layoff workers, but I just read that MS might have to cough up somewhere around $8.5B in the "Vista Capable" case:

'Vista Capable' case could cost Microsoft $8.5B

[pirate_lafitte]

Originally Posted by 70Ford

In Rare Move, Microsoft Is Exploring Job Cuts - WSJ.com

Microsoft mulls job cuts: report | U.S. | Reuters

Microsoft Corp. is seriously exploring significant work force reductions that could be announced as early as next week, in a sign that the weak economy is prompting tough decisions even at one of the steadiest ships in the technology industry.

I was hoping 2009 the bleeding would stop for Seattle. It turns out things are just getting worse. First the SuperSonics leave, the WaMu lays off alot of people. Now Microsoft has problems. When will things get better?

[drewba]

Originally Posted by coldbliss

Yeah, I just think Microsoft is the General Motors of the IT/software world. It's BIG. The company has the highest sales numbers with its consumer and business software. God knows how much money MS gets from the computer manufacturers with the Windows licensing agreements.

However...

Just like General Motors, the largess doesn't translate into innovative products that "WOW" the market. For decades, GM had the highest automobile sales worldwide until 2008. The same thing will happen to MS when businesses realize that the software products for PCs and servers are not good enough.

I don't agree with you here. I work as an IT engineering manager for a pretty large company and am regularly exposed to products from numerous vendors. While Microsoft's products might not have every cutting edge feature, their software is generally reliable, intuitive, very well documented and Microsoft's support organization is top-notch.

I'll grant that Vista was a big miss, but many of their back office products such as Exchange and SMS/SCCM lead in their space because they are the best solution for corporations.

Microsoft has also done a tremendous job of tying their products together (or leveraging their monopoly depending on your perspective). Office integrates with SharePoint, their management tool has configuration packs for all of their major applications... There's a lot of percieved benefits to end-users in this approach.

Microsoft is far from perfect, but I think they get a bad rap from people who want to see Goliath fall.

[Topaz]

Originally Posted by drewba

I don't agree with you here. I work as an IT engineering manager for a pretty large company and am regularly exposed to products from numerous vendors. While Microsoft's products might not have every cutting edge feature, their software is generally reliable, intuitive, very well documented and Microsoft's support organization is top-notch.

As a small business owner who lacks an IT support staff, it sure doesn't feel like their products are reliable to me. I once spent four hours troubleshooting a problem with Outlook only to finally remember to Google the error message in case it wasn't a problem specific to me and then I discovered that the automatic security update that had occurred the night before had broken Outlook for not only me but for everyone else. Because time spent dealing with software bugs is time I am not making any money (I have a profession where I bill out my time), that was a very expensive and frustrating day for me. Multiply that day by several times and you have the sum total of how much I have invested in trying to make Microsoft products work well.

I still don't like to see anyone at Microsoft lose a job because of the ripple effect in Seattle's economy, but people like me are always reluctant to install the latest version of Microsoft software because we dread the hit in productivity that will occur. One of my contractors just completely refuses to update his PC because after a decade of struggling to keep everything working properly in a Windows environment, he says he has finally burned out on dealing with the time intensive repercussions of changing anything.

The joke that small business owners tell about Microsoft software is: If only Bill Gates had a nickel for every Microsoft software problem. Oh, wait, he does...

[70Ford]

A Microsoft spokeswoman confirmed via e-mail this morning that "the majority" of the 1,400 job cuts Microsoft is announcing today are in Redmond...
Microsoft Pri0 | Majority of today's Microsoft job cuts to be in Redmond; total reduction is roughly 3 percent | Seattle Times Newspaper Blog