Microsoft cuts another 800 jobs – Whats the “story” this time?

The "good" ship Microsoft.  Personally I can't see Cpt Ballmer being the man to go down with it.Once upon a time there was a company called Microsoft…..

Yes readers, its story time again, although this time I don’t think there is a way Microsoft can tell its story any better (and to see the alleged quote by Bill Veghte on Vista’s problems and Microsoft stories see https://openbytes.wordpress.com/2009/11/01/bought-windows-7-windows-8-on-way-dubious-twitter-users/)

Before we go into the article it is worth mentioning that Boycott Novell reported the 800 job cuts way before the news hit the mainstream media.  Detractors to the BN website may like to consider that fact. http://boycottnovell.com/wiki/index.php/Main_Page

As the US is officially out of the recession (with the UK lagging slightly) more job losses are announced from Redmond, 800 (allegedly) of them, with the cuts apparently coming in the sales and marketing sections.  Could this be a reason why we saw this? – is Microsoft getting so hard up that it generates Twitter accounts to do its bidding? (and very badly I hasten to add)

The Guardian.co.uk has a take on the news of the cuts where it says in their article:

Microsoft is cutting another 800 jobs worldwide as it attempts to cope with falling demand for its products, the company announced today.

Source: http://www.guardian.co.uk/technology/2009/nov/04/microsoft-job-cuts

Falling demand for its products?  Did we ever think we’d see the day?

Of course Microsoft put their own take on this and other news by Kevin Turner allegedly saying:

We are pleased by the early positive response we are receiving for these products

To which I would say, steady there Kev.  Remember Mr Ballmer saying that Vista went wrong because of listening to early feedback?  You don’t want another Vista on your hands that takes 3 years to sort of apologise for do you?

The cuts are mostly in sales and marketing, and less in research and development, but they have cut some products.

Which cant be good news for many of the convenient MS faithful that pop up to defend and spread FUD regarding alternatives to MS?

These are interesting times and the company who tries to be everything for everybody (IMO) is finding that fighting that war on more than one battlefront is near on impossible.   When you look at the interest generated by a Google OS, Google Wave and the plethora of social networking/innovative ideas on the net that do not come from Redmond, one has to wonder how Microsoft will look in another year.  The growth of Linux/alternative usage in the last year cannot be disputed (whatever figure you want to put on it)

Lets hope Ballmer and crew can “get their story out” in the way they want to.  I get the feeling this is one fairy tell of Redmond’s which won’t have a happy ending.

NOTE: Picture from BoycottNovell and kind permission of Roy Schestowitz.

Goblin – bytes4free@googlemail.com


4 Comments Add yours

  1. Chips B Malroy says:

    Releasing Windows Seven one day before releasing the quarter reports seemed to be effective cover for MS, coupled with the “we beat expectations” (low) mantra. In fact their stock valve increased short term for now. The USA is officially out of recession, (one of MS main markets) and Xmas season is almost upon us, what could possible go wrong for MS?

    Dispite it being official that the USA is out of recession, that was due to a spike from the governments “cash for clunkers” program. That is over now, and reality has set back into the auto market, which is back down in sales again. More people are still unemployed at this point, so the xmas season is very important to retail sales here. A bad Xmas season here means retail will most likely not sell as many high end pc’s. Those being the ones with Windows Seven on them that MS makes most of its money in client sales.

    Also, the layoffs at MS might not be over as of yet. Nowhere did MS say that there would not be more coming. The rumored third week in December layoff, I would discount, as those are most likely just rumors spread by trolls. The reason I say that, is no company with any common sense lays off people during the holiday season in the USA if their have any smarts at all. Unless they want their company to be referred to as the “Grinch that stole Xmas” or far far worse for their employee’s families. So any future layoffs at MS in the USA would have to be before Thanksgiving and after New Years day.

    Google is becoming more than just a thorn now in MS side. Go Google! The leadership at Google is superb, and listened back when Fester Ballmer said he would “kill Google.” Google took the war to MS, they did not just sit on their laurels. Think Google Apps (Docs), Android (its kicking Winmo’s butt), and the future ChromeOS. Not to forget that Google search is still beyond the reach of Bing-MSN-Windows Live-Kumo or whatever MS wants to call it on any given day. Dispite what they name or call it, MS Search (Bing) is still a failure compared to Google, and a major cash sink for MS.

    I am not a big Ubuntu fan. Dislike the fact that Mono comes in it, as one of my main objections to using it. But, I would have to say that Shuttlesworth’s money to market free cd’s did help the linux cause in general, and that Ubuntu is light years ahead of Windows in general. Also, a comment from another Linux user, sort of rang true, who said; “if you are going sell and older computer, say on ebay, put Ubuntu on it, as that will increase the price about $10 to $15 dollars, as people have heard the Ubuntu name and will want to try it. Whereas, other distros they most likely have not heard, and it will be difficult to sell those.” Ubuntu does have name recognition, and any new release as such, will be a problem for MS to deal with. ChromeOS when its released, if done right, will have even more recognition, and might be enought to break the monopoly stranglehold on OEM’s that MS has. If this happens, MS is dead.

  2. Chips B Malroy says:

    What I would be looking at is January 8th for the next round of layoffs at MS, if the Xmas season does not sell lots of pc’s with the Windows Tax on them. Netbooks and Smartbooks are wild card, depending on how much MS can extract for putting Windows on Netbooks. Smartbooks (ARM) still are not here in any great number that I have seen so far. In fact, I have not seen even one so far in a retail store.

    Consider that MS has now (or in the process of) laidoff 6,000 employees. It also lost 2,000 by selling one part of the company, so that figure really is 8,000 gone. But wait, what about the “contractor?”. If will add that in its most likely approximately 13,000 that are gone or going, that worked at MS directly or indirectly. Of course very few in India were laid off, mostly for show. MS India continues to grow, a great sweat box for MS, that pays very low wages compared to the USA or Britain. MS is in effect, transferring or outsourcing to India. It has used its foreign visas as another source of cheap labor, but it also wants these to “train,” so when some of these go home, they will have a management or better train work force in places like India.

  3. openbytes says:

    If they lay off everyone but the Redmond cleaning staff they may show a profit in their next quarterly figures.

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