Microsoft exploring significant job cuts.

[Peripateticshutin]

Originally Posted by allforcats

And MicroSofties being as resourceful as they usually are, it'll be no surprise five years from now to find that many new start-up companies will be traced back to today's news

While I think you meant well with this, it's a very glib and insensitive thing to say about someone else's job situation.

The tech market, unlike that of 10 years ago, is not going back to "anyone with an idea and a t-shirt logo gets venture capital." 99% of laid off tech workers would not go on to found their own company or anything that grandiose. In fact, they'd probably have to leave WA to find work.

[neil0311]

Originally Posted by coldbliss

Yeah, I just think Microsoft is the General Motors of the IT/software world.

One thing to keep in mind here is this game of expectations "gotcha" played by the stock market and so-called analysts, many of whom work for firms that are on the brink of extinction without huge taxpayer cash infusions. If I tell the market I will lose $0.50/share and only post a loss of $0.47, my stock will rise, as I have "beat expectations," although my company's finances are in lousy shape. If I have guided for a profit of $0.50/share and only post a profit of $0.47/share, then the market is dissapointed as I have not "met expectations", despite a huge profit on increased revenue.

While I understand the realities of the PC market and where things may go in the next year, here is the reality of this situation:

"Microsoft Corp. today announced revenue of $16.63 billion for the second quarter ended Dec. 31, 2008, a 2% increase over the same period of the prior year. Operating income, net income and diluted earnings per share for the quarter were $5.94 billion, $4.17 billion and $0.47, declines of 8%, 11% and 6%, respectively, compared with the prior year."

$16.63 Billion with a net income of $4.17 Billion...that's a 25% bottom line profit...hardly treading in GM territory. In fact, the revenue number was an increase from the previous year, although a small one. When you consider annual revenues of more than $60 Billion, the days of 10% or 15% increases in revenue year over year are just not reasonable or realistic. Of course the areas of "concern" for "the street" were the operating and income numbers, although MSFT is far from posting a net loss and nowhere near GM in terms of bleeding cash, being saddled by an unsustainable expense model, or needing infusions of tax money to keep the doors open.

I think your analogy is correct as to the size of the companies, but beyond that the comparison ends and the analogy is flawed.

[MichaelinWA]

I know that AFC meant well. But you're right, these are horrible times for startup funding. Sadly, there just isn't anything positive to spin about the increasingly common and large job losses in the Puget Sound economy, at Microsoft or elsewhere.

Originally Posted by Peripateticshutin

While I think you meant well with this, it's a very glib and insensitive thing to say about someone else's job situation.

The tech market, unlike that of 10 years ago, is not going back to "anyone with an idea and a t-shirt logo gets venture capital." 99% of laid off tech workers would not go on to found their own company or anything that grandiose. In fact, they'd probably have to leave WA to find work.