Nothing like rumors of corporate layoffs to throw 89,000 Microsoft employees into unproductive turmoil. This time the rumors are being mongered by the
Wall Street Journal and
TechFlash, both of whom have been told to expect "far smaller" cuts than the
5,000 heads lost during the global financial downturn. And while it's easy to come to the conclusion that this round of layoffs is the result of the
Kin debacle, keep in mind that Microsoft is entering a new fiscal year -- the perfect time (from a budgetary perspective) to trim down and
refocus on new strategies. Still, if this does affect the Kin team, then let's just hope that the skilled engineers toiling inside the project's pink trenches are spared when the reductions begin as soon as today, according to
TechFlash. While
J Allard may be gone, one executive alone doesn't create a culture and governance model that builds multi-million dollar
silos of duplication and then turns a blind eye to
inter-team stonewalling. We say
aim high when it comes time to swing that axe Microsoft.
Update: TechFlash is now reporting that, yes, Redmond
has wielded its handled blade. At this point it's suggested to run only in the hundreds across the globe, and "the low hundreds in the Seattle region," across several groups. Sounds indeed more like a pruning of its over 88,000-strong workforce and less like Kin fallout.
posted July 7th 2010 6:40PM
Any company that thinks it's "..the perfect time to trim down and refocus on new strategies.." [at year end] instead of focusing on creating great products all the time is just pumping out rubbish. I hope that was your opinion rather than Microsoft's.
Master of karate and friendship for everyone... aweman.... ohwoaaaaaa!!
@Circa Survive
Ok that was supposed to say axeman, not aweman... fail, I know.
@Circa Survive
Axe man, fighter of the Work Man, champion of the sun. You're a master of karate and friendship for everyone, axe man!
amazing show :)
I think it is a perfect time to trim some fat and get very aggressive with phone 7 app and Xbox game development. Put your savings into a massive marketing campaign. I live in Chicago and can't walk a block without seeing a billboard for iPad. Can't remember ever seeing a Microsoft billboard.
@bob e
MS never needed marketing before, they just twisted the arms of their OEMs and force the world to use their garbage products.
You're surprised they suck at advertising?
Why is it that every time engadget mentions Microsoft, they mention that one report about the internal problems. What a bunch of dumb mac fanboys
M$ hasn't innovated any thing past 15 years except coping or buying of competitors The reason m$ is still around is due to monopoly which stifled innovation Apple and Google has changed the game ...thank god
@Makali Um, don't kid yourself. Apple and Google are very much in the habit of buying up companies for competitive advantage. Lala? ITA? Any of these sound familiar? Search for "Google acquisitions" and prepare to be impressed by the list. That's the way things are when you compete at that level, and have those kinds of resources. There are no saintly large corporations.
this is retarted news theres been layoffs in microsoft this entire year and tons of them in comparison to previous years bleh i feel bad for the families =(
Go back to Engadget Show #2... when Josh asked Uncle Fester about Mindshare he laughed it off "bla bla bla Reuters... bla bladibladi blah"
Moron.
Mindshare is important. Microsoft, with its bad attitude, will always lose in markets where they have actual competitors.
As usual they rely on two products for all their profits.
And guess what? you don't need to HIRE anyone new to work on a 20 year old product...
Good riddance... you unimaginative hacks
Some of it is outsourcing and/or selling contracts to other companies.
"One executive alone doesn't create a culture and governance model that builds multi-million dollar silos of duplication" Uhmm, Steve Jobs?
Hopefully some from the Xbox division.
I forsee more of this in Microsoft's future. If they really want to start moving the other direction they should can Lees and Ballmer and ask for J's forgiveness.
@Dshark
Again, you obviously know little or nothing about the situation. Since Ballmer took over, Microsoft have improved their financial situation, contrary to what your comment suggests. If these departments are no longer viable, or their roles have been rolled into other departments that are fully staffed, good businesses reduce their overhead, they don't carry deadwood along.
@apple immune due to poor sentence structure the meaning of your last sentence eludes me. The only reason Microsoft has improved it's financial situation as of late is because Windows7 isn't a bloated piece of crapware like Vista was. Great, they have maybe one or 2 good products upon which they make all of their money and only because virtually every business pc in the world uses it. That doesn't mean you're a good CEO. A good CEO is one that keeps up with trends and leads the pack, not one that just keeps his company from dying a slow, sad, agonizing death.
My point is there are things about Microsoft that I think are great, I like seven, but at the same time I'd like to see them at least TRY and innovate like J did with Kin, XBOX, and Zune. Ballmer (and Lees) needs to step it up or GTFO.
@Dshark
Work on your reading comprehension level before you try to discuss things you know little about... Also, try some alternative news sources..
@apple immune Or you could just troll with better grammar.
HAHAHAHAHAHAHA
How little people know about MS's financial situation...
Microsoft earn more net profit than apple and google combined... companies in this type of situation don't fold tent so easily.
@apple immune
You're just like Ballmer... in denial about the massive trendline, and clinging to Win+Office successes. Dont' you feel like you're on the Titanic heading for the iceberg right now?
@Wesscoast
No I don't...
Just because your delusion is so completely taken over your thought processes that you think your imagined trend means anything in the real world doesn't make it so.
Microsoft dominate in far more markets than you're currently aware of...
They're making tons of money, and tons of that money is going into R&D. Try some alternative news sources for your information once in a while.
@apple immune Best alternative I've found is Windows Weekly: http://www.twit.tv/ww
They bash MSFT like anyone would, but I find that they at least have their shiznit straight.
@Arch Stanton
LOL!! I've been listening to WW for like 2 years, Paul is irritating and constantly avoids talking about painful news stories, and talks in such vague generalities he can scarcely be called an 'expert' of anything.
And Leo Laporte is a classic people pleaser, on the Google show he talks smack about Apple/MS, and on the MS show he talks smack about Google and Apple. What a tool.
The only reason an 'anti MS' story ever gets aired on MS is.. sometimes its so painfully obvious even the fangirls can't deny it (like when the iPad launched, and MS ex-employees lashed out at MS for fumbling the Tablet market)
@apple immune
"Microsoft dominate in far more markets than you're currently aware of..." Wow.. talk about specifics? Nah, forget it.
By the way, WIndows isn't in a MARKET. It's a monopoly, you putz. Office, I would agree, totally dominates that market.
"They're making tons of money, and tons of that money is going into R&D. Try some alternative news sources for your information once in a while." Ah yeah, I've seen, and laughed at, the surface many times... Funny Apple can put better tech into a device that weighs about a pound and costs 1/200th as much.
Did you see the Spherical Surface? Ahahahaha... what a waste of an Comp. Sci. degree.
@Wesscoast Yeah not to mention them blowing the courier, then tag teaming the screwing up the slate. Watch them not even be the final OS on that thing. R&D hasn't come up with anything useful for Microsoft lately. I implore @apple immune to show some facts here.
The funny thing is that MS probably has more people working for them NOW then in Apple's entire history. So the i-Tards out there laughing, are really nothing more then trolls.
@John Doe
You're kidding right? They used to work at Microsoft...You should be happy for them...
You really think they're going to miss Crazy Ballmer stomping up and down the halls every morning blasting passers by with a furious "BINGGG!!!! SAY IT!!!!! SAY BING!!! BING BING BING!!!!" ?
Hate to hear anyone losing a job. It's ugly out there. Hope all land on their toes.
Apple ____-------=====>>>>>>>>>>||||||||||||||||||||||||||
Microsoft||||||||||||||||________________________________________
If MS survive next 50-100 years from now, Kin will bring largest ever income on the auctions where it may cost $10-20M a piece :)))
Allot of companies lay off some people. They just get to bloated with way to many employes and have to fire some of them. I'd only be worried about the future of a company if they fire a ton of people.
AND MY AXE
Seems like the right move. I've been saying it for years.
They should start the cuts with Ballmer - he's a freaky waste of space...
Ok the comment system is totally messed.. lots of misplaced comments hmmmm
"Sounds indeed more like a pruning of its over 88,000-strong workforce and less like Kin fallout. "
Yeah, right.