Microsoft to cut up to 18,000 jobs over the next year

Microsoft to cut up to 18,000 jobs over next year

That's 14% of its workforce. I blame Windows 8.

 

Some, if not actually most, will come from the Nokia accuasition. Companies have used this for quite some time to increase stock prices.

 

Why am I not surprised by this...the nokia probably lead to this but considering W8 debacle...they brought it upon themselves bad O/S with Layoff people will make connections regardless....

 

When I saw the title the first thing that came to mind was Windows 8

 

+1 and then some. Nokia acquisition or not, I doubt that they would need to cut down as much had the W8 been any less of a disaster...

 

This is it. They had a glut of duplicate employees after acquiring Nokia. The Windows 8 issue is a complete red herring for this round of layoffs; there's a new version of Windows in development (Threshold), so the popularity or unpopularity of Windows 8 doesn't in any way impact the number of employees Microsoft needs going forward. Making software is not like building cars; the number of employees you need is not proportional to the number of items you're selling.

 

Microsoft announces steps to simplify organization and align devices strategy

This has nothing to do with Windows 8.

The last time MS did layoffs was 2009 (Win8 did not exist yet). Note that from the time Win8 debuted to now, MS didn't lay anyone off.

It's an interesting belief that when a product does poorly, the logical reaction is thousands of layoffs. That's not what companies like MS do, especially when their bottom line is still doing well. If Windows 8 caused some sort of financial tailspin then sure, but it hasn't. I know everyone loves to think Windows 8 will have Microsoft software developers eating out of garbage cans and huddled over burning barrels en masse, but in reality, they are doing fine and have been doing fine all through Windows 8's life.

 

A counterpoint right here:

The Microsoft Job Cuts That Really Matter: 5,500 Non-Nokia Layoffs | Xconomy

 

Still not seeing it as related to Win8's sales numbers. Instead, it has to do with the Ballmer-to-Nadella restructuring (two different visions of how management and engineering should be structured).

Remember, these are the first Microsoft layoffs in years. Are they more likely related to an OS that came out two years ago, or a new CEO that took over a few months ago?

 

All we can do is speculate.

With that said, I'd argue that the new CEO wouldn't be as eager to cut heads if it were not for the (lack of success of) the OS in question...

 

If this was "cutting heads," i.e., punishing people for decisions, he'd cut a few high-ups, not thousands of cubicle workers. There's only two reasons cubicle workers get cut: (1) you can't afford to pay them, or (2) you don't need their labor.

The first isn't the case here, because Microsoft is actually doing very well financially right now. This isn't something in dispute. Microsoft isn't cutting these jobs because of a lack of funds.

As for the second case, in a software world (as opposed to making cars), the amount of labor you need is completely unrelated to the market success of a product you released two years ago. The development of Battlefield 5 will take the exact same number of programmers regardless of whether Battlefield 4 was well-received or poorly-received, right? The same is true of Windows and Office.

These layoffs have nothing to do with Windows 8.

 

One cuts where they can afford to. It's really that simple. In *any* corporation.

True, but we don't really know what their *internal* expectations were/are, do we?

I know nothing of Battlefield whatsoever, so I'm going to leave that part alone...

The rest is true in theory, however, cutting jobs equals bad publicity and that's something no one's keen on. Definitely not MS who was trashed more than enough regarding several less-than-successful ventures over the past couple of years...

And as I've previously stated: all we can do is speculate.

 

Microsoft doesn't care about publicity. They care about pleasing the shareholders. The layoffs made stock prices go.. up. That is what Microsoft cares about.

No matter what you say about "speculation" and "we don't know" and "expectations", you concretely want to blame Windows 8, 100% fully and completely, for this. And you can't, so you're dancing around it. These layoffs have nothing to do with Windows 8, and what you believe or say won't change that. These layoffs are the movements of a new CEO with a new vision and a new plan. It's change. Change happens, especially with a new, aggressively motivated CEO. Nadella is not the "DEVELOPERS DEVELOPERS DEVELOPERS" caricature CEO that Ballmer was. This dude's serious.

 

I think we can simply agree Win 8 is an unmitigated disaster.

However, I think I would be more likely to believe this is about the new CEO's new vision for the company than a failure of a single specific product.

The thing is... we are trying to apply logic to the managing of a MASSIVE corporation. Understand that at that level, its the mob. Logic and intelligence is not really part of the equation. You have to understand... the value of a company's products and the quality of the work does NOT necessarily equal the profitability of the shareholders.

In fact, sometimes its EXACTLY THE OPPOSITE.

Make a staggeringly miserable product... stock drops... BUY LOW! Make a solid but not perfect product, hype it to the roof... SELL HIGH!
Note that the products themselves can be mediocre to awful... as long as people THINK they will be profitable, you win. If you have a genius product and not the correct amount of hype... your stock stays low as the product never sells to any real amount of people despite the fact it is amazing.

This isn't to say that some consideration is being made... but that the decisions and reasoning being made here may not have anything to do with the actions.

 

Kindly refrain from interpreting to others - let alone telling me - what I want to do, pretty please. Now.

 

In a neverending battle with the growing touchpad marketshare over notebooks and computers, the last thing OEMs needed was a horrible OS like Windows 8.

Hopefully they have learned, and I can only imagine how much money they have thrown away on Metro, only being forced to go back on the original Windows theme more or less.
Quite ironic that the Metro system that was suppose to push Windows users toward buying apps for Windows and Metro through Windows marketspace, actually ended up costing them money and booting people off their jobs.

 

Actually IMHO if Windows 8 were a success and issueless the job cuts would probably be higher. With a good solid OS/UI

1.) a lot less tech support people would be needed.
2.) Developers needed to change the UI would be a lot less in demand.
3.) Management needed for damage control would be less in demand.
4.) Developers would probably have a lot less redirection for their UI.

With this I am sure there are other reasons as well.

Now with this though they can hide future Windows 8 loss (or non growth) in the restructuring costs of the layoffs. They now have a year plus a few quarters even after that to hide issues from stock holders. This will give them some time for Windows 9 hype and/or success. So while this still is a smart move because of Nokia it also is a double edge sword for them because of the present lack luster UI. Again it should be understood it isn't because of what the OS has done to them to date but to protect them from it in the future and leave spin ability along with creative book making as an option.

 

Exactly. By accelerating the timetable for Windows Threshold, they need more labor, not less. Attributing these layoffs to Windows 8 is contradicted by all evidence and all business dynamics on the table.

 

The layoffs at Microsoft have very little to do with Windows 8. I have a couple friends in various groups at MS, and they've been telling me the mood there today has been very grim. It's painful, but ask anyone there and they will admit it's necessary:

1.- There's a huge glut of employees from the Nokia acquisition. Unsurprisingly, most of the cuts are from those groups.
2.- MS's culture needs to change--that was one huge point that Nadella made upon taking over. You can't have innovation and risk-taking with the poisonous politics at MS today.
3.- MS needs to refocus on its core strengths and cut extra fat (ie: XBOX Entertainment Studios based out of Santa Monica).

Tech writers that are correlating these cuts with Windows 8's performance are being shortsighted. There's far more significant reasons for the layoffs.

 

1> That is true too many duplicate employees will drain more resources rather then improve product.
2> Yeah like that will ever change...they didn't listed to the W8 Testers and IT tester - what makes you think they will "Need a Change" really?
3> Extra Fat like Bonus CEO/Managemant paycut. Focus on Win O/S and Office Suite that consumers wanted and that will sell and gain market shares. It's really simple make something everyone wants and has QC and they will buy it - make something bad and no one will buy it.
Business 101 not GREED 101....

Last part:
Shortsighted but remember whom shot themselves in the foot not the Tech Writers... M$ Blunder Ballamer and Company....did that for them...and gave a story to run on.

IMHO

 

I had originally typed a long rant, I just give up! There is just no helping them and in the end they deserve what happens. Essentially all the market spin and maneuvers will not help a failing UI that consumers refuse to buy into. So it is in all just prolonging the inevitable.

 

Correlation is not causation. Windows 8 is a comparatively unsuccessful operating system. Microsoft is firing a lot of people. These facts are not related. As someone mentioned earlier, a failed OS inspires a few firings at the top, like the guy in charge of Windows (Sinofsky) and the CEO of the company (Ballmer). These have already happened. The new firings are primarily because (in my opinion) they bought Nokia for its patents and got a whole bunch of duplicated engineers as part of the deal.

 

Microsoft shouldn't have bought Nokia then! Or better yet, that deal should have never been allowed.

 

I am with you on this one...if they don't fix the leak in the boat they are going to be left behind in market shares. We'll just see how this story goes but from the world lifeline lol...W8 doesn't look to have a good health report. Notice all the hype and ads for W8 is no more and no one talks as thou W8 will continue limping along. I'll wait to see what W9 or WindowsX has to offer if those ever come out but if those become Cloud O/S you can kiss my Windows......whatever gone and will be sticking with Windows 7 for however long it takes.

Unfortunately those wanting less Government Oversight and Regulation is what lead to this kinda problem. So don't blame M$ even if one wants to.

 

Actually too that end, no one buys a company today without plans of either tearing it apart or massive restructuring. So in the end something had to give.

 

lol...yeah unfortunately even then they haven't learned......

 

You think Microsoft is bad? Take a look at Pfizer. There's a reason why "you're Pfizered!" has become a running joke in the pharma industry.

 

They bought Nokia for its designs, IP, branding, etc, not its labor force. It's not "nice," but neither is the market economy. This is commonplace and there's absolutely nothing illegal about it.

 

Yeah I know. Business, progress, and all that jazz. Still sucks for those (apparently) 12k Nokia employees. Imagine yourself in their shoes.
Wonder how it would go down if MS didn't decide to buy Nokia. I still think there would be some "laying off" going, but not that much.

 

Nokia's phone division was getting beat badly before MS bought them. If MS didn't lay them off, their jobs would have been at high risk by now anyway.

 

That's all speculation by outsiders so unless one got insider trading info that is speculation by all standards.

 

That's the sad fact with M$ buyout....nothing in the purchase suggest innovations now or later by M$ "Inside thinking not outside of the box thinking". Not really this isn't a market economy...cut off all the Deductions, Tax Shelters, Off Shore accounts, Subsidiaries by TaxPayers and you will see "REAL" Capitalism/Free Market" whom will survive and whom was leeching off Public Money to reward shareholders. Nothing in this Market Economy is real Market Economy - I just love it when people talk as those it's Market Driven Economy get rid of all those perks and those so call Fortune 500 will become Disaster 500 at that point they will have to put their own money where their mouth is. Buying for IP shows lack of innovations and a BROKEN Patent System that does nothing to strive for REAL innovations.