Microsoft To Cut 5,000 Jobs

[IJ Reilly]

Well I guess they can save up enough money to do another failed ad campaign by laying off those people.

5000 employees at say average $150,000 cost (salary + benefits) = $750 million dollars...

The Microsoft Invincibility Myth
http://www.roughlydrafted.com/RD/Home/C91CCB7E-A668-4B0A-ABB6-98840AC8A317.html

Love that Roughly Drafted. Pretty much says it all.

Well they did still grow this quarter, but I don't think they've been in any recession quite like this one so I don't know if previous history can go

There were financial companies that have existed 100 years that seemed invulnerable at this point a year ago, that are completely gone now

If Apple had announced 2% growth, $900 million below their own forecasts, the grave dancers would be out in force. Don't you think?

Microsoft is a technology company, not a financial company. Be that as it may, the take-away here should be that Microsoft has not perfected an approach the tech market that others should rush to emulate. As the Roughly Drafted article argues so well, many have said over the years (and many here still do) that if Apple wants to be "really successful," they have to emulate Microsoft's model. It turns out that Microsoft has a difficult time emulating the Microsoft model. So that was always madness -- and those of us who've have long said as much have to take some psychic comfort from seeing the giant stumble.

 

[chewietobbacca]

It's just the nature of the beast, and of capitalism. When you grow as big as MS did, the direction you can go from there is down

 

[IJ Reilly]

It's just the nature of the beast, and of capitalism. When you grow as big as MS did, the direction you can go from there is down

Until now, hardy anyone would have said so in Microsoft's case. They were the unstoppable juggernaut, according to the conventional wisdom.

 

[bradl]

Those bloody @$#@#$!

They sacked the entire ACES studio!

http://www.gamasutra.com/php-bin/news_index.php?story=21981

Micro$oft's best selling non-OS/productivity products in their catalog, and they nix the entire studio. This means no Flight Simulator, Train simulator, and ESP (which businesses use). These products were making PROFIT for M$, while crap like the ZUNE blew it away (not to mention VI$TA)...

what the h-e-double-toothpicks are they thinking!?!? Idiots.

BL.

 

[gkarris]

^^^ From a pilot's perspective, X-Plane for Mac or PC is tons better anyways and doesn't require some super-gaming rig to run...

Well I guess they can save up enough money to do another failed ad campaign by laying off those people.

5000 employees at say average $150,000 cost (salary + benefits) = $750 million dollars...

The Microsoft Invincibility Myth
http://www.roughlydrafted.com/RD/Home/C91CCB7E-A668-4B0A-ABB6-98840AC8A317.html

Great article! Thanks!

 

[GSMiller]

I guess it will never make sense to me the philosophy of "hey, we are doing great and are profitable, but now we are going to layoff some folks to help our bottom line". And that's what it seems like this memo said. They announce $16.6 billion in revenue a 2% increase than last year but we are going to fire some of you because that's not a good enough number.

This ranks right up there with TV companies canceling very popular shows because the economy is bad. Shows that bring viewership and revenue in, or like a story that was on 20/20 last week of a Denver news anchor who was with the company for 26 years, the most popular news anchor they had and then were bought out and the guy was canned.

Just doesn't make sense to me. The philosophy of firing the best most qualified people because they make the most money but keep the useless fat boggles my mind.

I was thinking the same thing. Way to share your revenue with willing and hard working people there, Microsoft!

 

[bradl]

^^^ From a pilot's perspective, X-Plane for Mac or PC is tons better anyways and doesn't require some super-gaming rig to run...

True! but personally, I never bought FSX, so on my current box, FS9 screams with sliders maxed out!

But, it is also the fact that they killed something that was profitable for them (ACES) and are keeping something that isn't and probably never will be (Zune). Very stupid decision by M$.

BL.

 

[SactoGuy18]

But, it is also the fact that they killed something that was profitable for them (ACES) and are keeping something that isn't and probably never will be (Zune). Very stupid decision by M$.

BL.

Actually, the current-generation Zunes are pretty good portable media players, with pretty nice controls and Microsoft has finally cleaned up its act with the current generation Zune software. I wouldn't be surprised that Microsoft may do substantial price cuts (lowering the 120 GB to US$200, lowering the 16 GB to US$150, and lowering the 8 GB to $99) to build up marketshare even quicker.

 

[gkarris]

True! but personally, I never bought FSX, so on my current box, FS9 screams with sliders maxed out!

But, it is also the fact that they killed something that was profitable for them (ACES) and are keeping something that isn't and probably never will be (Zune). Very stupid decision by M$.

BL.

I met the head developers at Oshkosh several years back - they must make a lot of money as they each had their own private plane they flew in on (well, of course they're pilots). Great bunch of guys.

If this is true - too bad...

 

[Mousse]

Well I guess they can save up enough money to do another failed ad campaign by laying off those people.

5000 employees at say average $150,000 cost (salary + benefits) = $750 million dollars...

I'd rather see the genius who thought up these hair brained schemes axed instead of hard working engineers. Axe 3 useless suits. That's also a $750 million savings.