Window Job Cuts.

[jlhaslip 4]

reference: http://forums.xisto.com/no_longer_exists/

Their profit is down 11% in the quarter and still around 25% of Revenues.
That means they are usually near 30% of Sales. It would be nice to have those numbers in the business I am involved in.

[CyberWizard 0]

I've listen that they will lay off almost 15000 employees from total 50000 in 2009. This will be disaster...

[miladinoski 1]

They are all moving to Linux now, I guess??

 

I think that they didn't had a choice. Every company in the US is affected by the economic crysis and the bigger the company the bigger the losses in money so they had to cut down the staff even in big numbers like these...

 

I guess any EVIL and GREEDY plans on taking up a firm are over now... bai bai Microsoft! Hope your company dies soon you'll be allright and you will continue to produce products of high quality

rubbish.

[Echo_of_thunder 1]

reading about all this and watching CNBC power lunch as I make this post. I can really understand why this has happend. with how Vista bombed I feel as they are cutting there losses. They Mircrosoft know they have messed up. Now there employees are paying the price sadly.

[rayzoredge 2]

I think that they didn't had a choice. Every company in the US is affected by the economic crysis and the bigger the company the bigger the losses in money so they had to cut down the staff even in big numbers like these...

I thought it was funny that you spelled out the name of the game... if that was your intent.

 

Vista was a huge flop, but I'm sure that Microsoft's other projects are holding up the corporate giant, like the Office suites, other productivity applications, etc. They actually hired a record 11200 in June 2008, so maybe they were a bit ambitious in the hiring department. The cut-backs are from R&D, HR, and other less-vital departments... but it sucks for those affected by the lay-off.

 

Source

[buxgoddess 1]

The US slow down has hit and it hit hard. Not only did it make the tunas run for cover but made the sharks scared. Smaller companies a re almost at the verge of perish and the giant ones are finding the cost a heavy burden to carry forward. Look at the scenario when the big companies do not earn and do not get projects for themselves, the smaller companies who work on behalf an for these big companies find themselves without work. The result being more cut in project and money.When the big companies suffer , then there is no offshoreing or outsourcing of project or parts whi makes the smaller companies to shut down. Direct implications are loss of job, a pink slip, or a voluntary retirement scheme. Loss of job leads to poverty, if not starvation, and hatered. This leads to frustration and feeling or loss and revenge. Few of these people revolt against the prevailing laws and becomes terrorists. There is no saying that a day will come when everyone in their own place and condition will be a criminal and there will be nothing to work for , as there will be nothing to be used to protect the interest of thousands who will lose their jobs.

[miladinoski 1]

I thought it was funny that you spelled out the name of the game... if that was your intent.

I'm witty. Didn't you get that by now? or well... at least I'm trying...

Vista was a huge flop

If I judge by your posts about it here... Haha you are certainly very pissed off from it!

but I'm sure that Microsoft's other projects are holding up the corporate giant, like the Office suites, other productivity applications, etc.

They are holding up, but will they if the crysis continues?

They actually hired a record 11200 in June 2008, so maybe they were a bit ambitious in the hiring department.

See. They are Microsoft. They thought that they can do whatever they want. They can even play games with the employees. "Oh, hewwo. Wewcome to Wedmond. Please take your statue of Bill Gates 3 streets straight of you and continue to the company's HQ." 3 months later. "Oh, we're sorry! You have to go. See you sometimes... If we live. Oh, and leave the statue. We're out of cash." They will call it: "Microsoft sheeple employees manager"

The cut-backs are from R&D, HR, and other less-vital departments... but it sucks for those affected by the lay-off.

Source

I'm sure they will fire more people and their more important products will suffer.

Do you see now how I'm witty and I pointed that out? hahaha I'm just abusing the overused gags that are used in the society which I hate - especially [pun intended] or [pun not intended]. Well at least I tried my best.

[abhigyan 0]

It's not happening in US it is connected with whole world even in India most of the IT companies are service based and almost every company have majority of US clients so these companies are directly associated with US financial crisis even Indian BPO industry are under big threat they also have same majority of US clients. Employees of these companies are under great pressure as i am associated with a US manufacturing client that company is forcing us for cost cutting existence of our project is swinging between yes and no may be tomorrow morning i could found myself unallocated once a employee gets unallocated company pays him for doing nothing until that employee gets some new project and this time god knows how long these company will pay to such unallocated and as i know India's major income comes from IT company's and BPO industry's.God knows what is remaining i hope all of you know one of the top Indian IT company Satyam. Although IT looks some in some safe condition than other but i am sure if this will stay for long time this is going to affect IT vary badly.

[Zeyomie 0]

Seriously, Companies like Microsoft need to give their CEO's and executives a huge paycut instead of firing employees. It makes me sick that all these conglomerates are just cutting people away while the higher ups get million dollar paychecks. Cut one executives paycheck in half, say 700k down to 350, still comfortable for the executive, and you would save at least 10 jobs. Do that with a couple hundred higher ups, which I'm sure Microsoft has, an exec for every department, the the v-execs, and WHOA, you wouldn't have to put 1500 on the unemployment list! That is something I wish the government could do. Limit how much an executive could make when a company has financial problems, (profits down, etc) It would save so many jobs, and people in general.

[buxgoddess 1]

I wonder about the salary ratio of the top bosses to the actual workforce. It is unbelievable that a top management gets the salary of more than 50 employees together. The workforce may not be one of the top boss like figure and is not what he deserves but surely top bosses really do not do much work, the proof is simple because all their ideas and plans, the company buys for such hefty price, falls apart at the time of crisis. And government needs to intervene - a group of people who know nothing of finance probably. A shame situation. These top bosses which includes CEO and Board members are actually a bunch of jokers who create and attend meetings and work through reports created and generated by others. Let me ask how many of the CEO creates a presentation himself, how many collect company statistics and data themselves. Actually none. The do not have enough credibility to do it themselves.If Microsoft plans to dump 1500 or 15000 employees, it is the same workforce that was recruited freshers or new entrants. And you can well guess how long they were in the company. If such is the situation when a company top bosses asks to hire more workforce and in a span of six months wind up and shamelessly ask these new recruits to quit, what is the credibility of these so called decision makers. These people never have a responsibility on themselves about the well being of the employees.I never understand about the need to pay the top management a salary that they get even for not working. Its the lower ranks that suffer. The salary of the top management if reduced by 10% will save the salary of five employees will be saved for each top managements pay cut. Why not save the resource in the company by retaining workforce and asking them to work better and efficiently then paying the top management who eventually have less members under them and overall have poor performance in quality and quantity of the product. Some companies like Microsoft heavily invest in the sales development program, and if the sales are down then the simple theory of economics says cut the price and push the product. I am happy that Microsoft is actually doing this. The Windows 7, god knows why such a name, is now available for beta testing to one and all. This was not the case earlier when they though that if you want some thing you pay. The approach of beta testing and hands on approach will definitely boost the popularity of Windows 7, which did not happen with Vista. Also a recent drive to provide a trimmed and limited version of some acclaimed products of Microsoft are being given to College and School students on producing their ID cards in the Microsoft sales centers, the serial keys of which are available on online registration. A very welcome move indeed.I only wish that the management thinks on salary cuts from their pockets, instead of paying away in taxes, and paying the actual workforce, their bread and butter.

Edited January 23, 2009 by buxgoddess (see edit history)

[abhigyan 0]

I wonder about the salary ratio of the top bosses to the actual workforce. It is unbelievable that a top management gets the salary of more than 50 employees together. The workforce may not be one of the top boss like figure and is not what he deserves but surely top bosses really do not do much work, the proof is simple because all their ideas and plans, the company buys for such hefty price, falls apart at the time of crisis. And government needs to intervene - a group of people who know nothing of finance probably. A shame situation.
These top bosses which includes CEO and Board members are actually a bunch of jokers who create and attend meetings and work through reports created and generated by others. Let me ask how many of the CEO creates a presentation himself, how many collect company statistics and data themselves. Actually none. The do not have enough credibility to do it themselves.

If Microsoft plans to dump 1500 or 15000 employees, it is the same workforce that was recruited freshers or new entrants. And you can well guess how long they were in the company. If such is the situation when a company top bosses asks to hire more workforce and in a span of six months wind up and shamelessly ask these new recruits to quit, what is the credibility of these so called decision makers. These people never have a responsibility on themselves about the well being of the employees.

I never understand about the need to pay the top management a salary that they get even for not working. Its the lower ranks that suffer. The salary of the top management if reduced by 10% will save the salary of five employees will be saved for each top managements pay cut. Why not save the resource in the company by retaining workforce and asking them to work better and efficiently then paying the top management who eventually have less members under them and overall have poor performance in quality and quantity of the product.

Some companies like Microsoft heavily invest in the sales development program, and if the sales are down then the simple theory of economics says cut the price and push the product. I am happy that Microsoft is actually doing this. The Windows 7, god knows why such a name, is now available for beta testing to one and all. This was not the case earlier when they though that if you want some thing you pay. The approach of beta testing and hands on approach will definitely boost the popularity of Windows 7, which did not happen with Vista. Also a recent drive to provide a trimmed and limited version of some acclaimed products of Microsoft are being given to College and School students on producing their ID cards in the Microsoft sales centers, the serial keys of which are available on online registration. A very welcome move indeed.

I only wish that the management thinks on salary cuts from their pockets, instead of paying away in taxes, and paying the actual workforce, their bread and butter.

Yah in a way you are right that because these people are taking decisions and if there decisions are not so good to hold the company in the bad time then they should be the first person to pay for it but the fact if just reverse company cut the pay and jobs of its real work force and reason is vary clear the owner of company dont want any justice they just want to make profit and in hard time off Corse they want to save there company now if any how company tries to cut the pay of those top level managers they are going to fight for it in process it is quite possible that they can leave the job and in bad time this could cast more to any company than any thing. It could look like lack of judgment but it is much profitable for the owner two reduce the work force than loosing his top management and it is quite natural when a person works for years in accompany he knows vary well about the policies work culture and other things and in most of the big companies they always keep the backup of every one on the workforce but keeping a backup of a top Level employee is too tough . In bad time no one can afford a new top level manager so they cut the lower level. Most of the time companies reduce the people who are not working on any important thing or not working on any thing important or even they cut the job of people who are not performing vary well.
I remember one day i was watching a program on some TV channel it was something on survival en extreme conditions. There was a group of people stucked in Alaska in vary cold environment and one of them got seriously injured he was without shelter and for the survival his brain stopped the flow of blood in his fingers so that it could continue sending blood in more important parts of body like mind and other parts same is the condition is here in vary bad conditions company have started cutting less important parts because they can't cut there heads.

[buxgoddess 1]

Yah in a way you are right that because these people are taking decisions and if there decisions are not so good to hold the company in the bad time then they should be the first person to pay for it but the fact if just reverse company cut the pay and jobs of its real work force and reason is vary clear the owner of company don't want any justice they just want to make profit and in hard time off Corse they want to save there company now if any how company tries to cut the pay of those top level managers they are going to fight for it in process it is quite possible that they can leave the job and in bad time this could cast more to any company than any thing. It could look like lack of judgment but it is much profitable for the owner two reduce the work force than loosing his top management and it is quite natural when a person works for years in accompany he knows vary well about the policies work culture and other things and in most of the big companies they always keep the backup of every one on the workforce but keeping a backup of a top Level employee is too tough . In bad time no one can afford a new top level manager so they cut the lower level. Most of the time companies reduce the people who are not working on any important thing or not working on any thing important or even they cut the job of people who are not performing vary well.I remember one day i was watching a program on some TV channel it was something on survival en extreme conditions. There was a group of people stucked in Alaska in vary cold environment and one of them got seriously injured he was without shelter and for the survival his brain stopped the flow of blood in his fingers so that it could continue sending blood in more important parts of body like mind and other parts same is the condition is here in vary bad conditions company have started cutting less important parts because they can't cut there heads.

I do agree to this fact that no one wants to lose the top bosses as it will just make their pants wet. The fact is that these top bosses know so much about the company that they cannot be spared.
Itz like the mafia group which kills if someone leaves and will not expect to be a police reporter.
If companies are hiding their faults then there is no rescue for the workers.

[Antv912 0]

Wow this is a big shocker, this is Microsoft's first ever lay-off. While this was happening they also had to rethink the windows client. Because Microsoft is largely dependant on the sale of the computers for there company revenue.

anuary 22, 2009 (IDG News Service) Microsoft Corp.'s first-ever layoffs point to a need for the company to rethink its Windows client business, which is largely responsible for the disappointing financial results that led to the thousands of Microsoft job cuts announced Thursday. Microsoft's second-quarter results Thursday, in which net profit fell 11%, show that the company is still largely dependent on its Windows client business for its financial health. That business in turn is dependent on the market for PC sales, which is currently flat and shows no signs of improving over the short term.
Microsoft has been trying to diversify its revenue for some time and has made incremental progress. But until other parts of the business begin to pull in more revenue, the company should examine ways to keep its Windows client business from damaging its overall financial health if the current economic conditions worsen, analysts said.

"Today really shows how dependent they are on PC sales," said Matt Rosoff, an analyst at research firm Directions on Microsoft. "They're still largely a desktop software company."

Rosoff said Microsoft has done a good job trying to diversify its revenue base, and there is some good news in Thursday's results to reflect those efforts.

Besides the Windows client business, one division that has been a reliable source of revenue for some time is server and tools, which Thursday recorded its 26th consecutive quarter of double-digit growth. This was driven largely by Windows Server 2008, which is just now beginning to take hold in the market and should drive continued success in this part of Microsoft's business, said one analyst.

"Even in a downturn, [Windows Server 2008] brings a lot of new value to the market, in particular for customers that want to reduce costs" because it includes built-in virtualization software, said Al Gillen, a program vice president at research firm IDC. Virtualization software allows companies to consolidate server hardware and therefore cut IT costs.

Thursday's results also showed promising revenue growth in Microsoft's entertainment and devices group and business division -- the latter of which is home to Microsoft's other cash cow, Office.

But even Microsoft acknowledged Thursday that a flat PC market could continue to affect the overall Office business, while the entertainment and devices unit's performance had more to do with holiday sales of the Xbox 360 game console than overall growth in that market.

As other businesses pull the weight of Windows client, Microsoft should spend some time rethinking how it approaches that part of its business, analysts said. Pondering ways to develop an annuity revenue stream for Windows could be one way to do that, suggested Neil MacDonald, a vice president at research firm Gartner Inc.


Annuity revenue is any revenue that is recurring, such as from ongoing subscriptions or long-term contracts. Companies can count on such revenue and factor it into financial outlooks ahead of time.

"If Microsoft could develop a business model where you pay as you go, it would certainly protect them in times like this," MacDonald said. "I think you'll see Microsoft experiment with new models on Windows, especially with cloud-based services, based on an annuity revenue stream."

Thursday's results also show that Microsoft still has some lessons to learn from Windows Vista, which appears to have come back to haunt the company.

Microsoft put considerable investment and time into developing Vista, expecting the operating system to be more successful than it has been. In the middle of Vista's development cycle, the company also had to put out a major update to Windows XP in the form of a service pack that it did not charge for, also interrupting the normal revenue flow of its client business.

At the time it was developing Vista, Microsoft thought it could "change the PC market with a new OS," Directions on Microsoft's Rosoff said.

However, consumers as a whole did not rush out to purchase new machines just because they had Vista on them, and many companies opted to skip the operating system altogether and continue to run XP instead.

Microsoft has now learned that the Windows client is not going to be the kind of product that will "suddenly spur this huge wave" of PC market growth, Rosoff said, and it probably will approach the business with that in mind in the future.

Edited January 25, 2009 by Antv912 (see edit history)