or Connect
AppleInsider › Forums › General › General Discussion › Microsoft may announce biggest round of layoffs in company history this week - report
New Posts  All Forums:Forum Nav:

Microsoft may announce biggest round of layoffs in company history this week - report

post #1 of 85
Thread Starter 
Redmond, Wash., software giant Microsoft, which has struggled to find an answer to the success of Apple's iPad and iPhone, is said to be planning major staff reductions that could be the single biggest round of layoffs in the company's history.

Surface


The layoffs could be announced this week, and may top the 5,800 jobs that the company cut in 2009, according to unnamed sources who spoke with Bloomberg. The reductions are said to be part of a restructuring planned to reduce overlaps between Microsoft's mobile division and the Nokia Oyj handset unit it acquired last year for $7.2 billion.

That purchase of Nokia added some 30,000 employees to Microsoft's payroll, bringing its total number of personnel to nearly 130,000 as of early June.

The cost cutting measures are just the latest in a string of changes for the company, as it attempts to reclaim some of its past glory since lost to mobile devices, particularly Apple's iPhone and iPad. Microsoft was a major player in the smartphone space before the iPhone and devices running Google's Android took over the market, and sales of low-end Windows PCs have been hurt by the success of the iPad.

The biggest recent shakeup for Microsoft was the ouster of former Chief Executive Steve Ballmer, who many pundits and investors blamed for an inability to adapt in a changing mobile market. His successor, Satya Nadella, officially took over as CEO in February.

Nadella
Satya Nadella. | Source: Microsoft


While Microsoft was caught flat-footed by the iPhone and iPad, it took the company even longer to bring its popular Office suite to the iPad. Office for iPad became available this March, four years after Apple's market leading tablet first hit store shelves.

Apple's recent success undoubtedly helped push Microsoft into the hardware space, where the company develops its own hybrid tablet-laptop Surface devices, along with the recently acquired Nokia handset division, and even rumors of a forthcoming smart watch. Those moves mark a major change for Microsoft, which previously focused largely on software and services under the regime of Ballmer.
post #2 of 85

Sounds like it will be mostly ex-Nokia staff. 

post #3 of 85
And good luck with all that. IMO on the business side, they are probably pretty good for a very long time. Very large firms/governments etc are going to loath changing to any alternative to Office/Windows. But the consumer side... That's a tough nut to crack.... however they are throwing tons of money at it. It will be interesting.
Hokey religions and ancient weapons are no match for a good blaster by your side, kid.
Reply
Hokey religions and ancient weapons are no match for a good blaster by your side, kid.
Reply
post #4 of 85
Quote:
Originally Posted by RichL View Post
 

Sounds like it will be mostly ex-Nokia staff. 

if you read this   and this ,   getting out of Hardware is a given, and implicitly, deprecating Windows OS as a profit leader, and focusing on cloud services (azure) and apps (outlook.com, office365, oneNote).


Edited by TheOtherGeoff - 7/15/14 at 8:50am
post #5 of 85
MS should start writing software for Apple or go back to it's ill-gotten roots MS-DOS.
post #6 of 85
Quote:
Originally Posted by boeyc15 View Post

And good luck with all that. IMO on the business side, they are probably pretty good for a very long time. Very large firms/governments etc are going to loath changing to any alternative to Office/Windows. But the consumer side... That's a tough nut to crack.... however they are throwing tons of money at it. It will be interesting.

long in gov't/corp space is 7 years.   7 years ago the iPhone was introduced.   Seems like yesterday.

 

What I'm saying is, Windows Server die like AS/400 did for IBM (that was 2000 when they killed it).  Windows Server is less like a mainframe, because IBM is still making mainframes.  Is there a compelling reason for for Windows Server?  Other than Active Directory?  which is one VPN away from being served in the cloud.  

post #7 of 85
good news is everyone gets to leave with a parting gift- a surface pro and a signed photo of steve balmer doing the monkey dance.
post #8 of 85

They have been struggling not just with iPad and iPhone competition but there biggest market Windows. Windows 8 is a total failure, nobody wants it or likes it. It is the biggest tool since Windows Vista. Trying to force to GUI's into one operating system is just stupid especially trying to make a desktop work like a tablet when there is no tablet functionality. 

post #9 of 85
At least those released will be able to buy a Mac without being looked at askance by MS co-workers.

Worth it, in my book.
post #10 of 85
Quote:
Originally Posted by Chandra View Post

MS should start writing software for Apple or go back to it's ill-gotten roots MS-DOS.

Note that Microsoft already writes software for Apple, including Office for OS X as well as Office apps for iOS (the latter were belatedly created). The latter is what they have mostly stuck with since Gates left and it proved to be the wrong path.

 

Remember, Gates announced in June 2006 that he would phase out of day-to-day operations at Microsoft over a two-year span. That was a full year before Apple shipped the original iPhone.

 

The real issue is that Microsoft has done a piss poor job in the mobile sector. This isn't just about Microsoft being late in the game with Office for iPad. It's also about their stumblings in re-imagining Windows for mobile devices.
post #11 of 85
If Microsoft isn't in the process of re-writing an operating system from scratch, they are dead.
post #12 of 85
Its not like microsoft is broke, they could rise like a phoenix just like apple...

Probabilty unknown of course. They monkey dance might be patented...
post #13 of 85

What a shock! (not!).

post #14 of 85
Wow! This article contains enough hyperbole, false statements and plain BS to even amaze James Carney. Maybe AppleInsider should just stick to reporting Apple news and forgo commenting on Microsoft - since their bias is so blinding reality is undiscoverable.
post #15 of 85
Quote:
Originally Posted by Chandra View Post

MS should start writing software for Apple or go back to it's ill-gotten roots MS-DOS.

I second that notion. Software is where they should continue in. Leave the OS/hardware market. They produce the tackiest HW. Sans the XBox. That seemed to have worked for them, except didnt they lose money producing it or whatever?

post #16 of 85
Quote:
Originally Posted by bdkennedy1 View Post

If Microsoft isn't in the process of re-writing an operating system from scratch, they are dead.
They seem to be doing quite well for a walking corpse. Maybe they are waiting for Darryl to fire the headshot
post #17 of 85

"Rot row, Astro!" :(

post #18 of 85
I just visited the Verge and didn't see one story about Microsoft's potential layoffs. There was however a story about senator Cory Booker taking selfies with other senators. Wow is that site going downhill.
post #19 of 85
They focused on software under Ballmer? Uh, no. They introduced the Zune under him, and directly criticized and mocked the iPhone as the "most expensive phone in the world." Ballmer stupidly tried to compete with Apple on hardware, the very mistake Apple made in the 1980s.
I can only please one person per day.  Today is not your day.  Tomorrow doesn't look good either.  
Reply
I can only please one person per day.  Today is not your day.  Tomorrow doesn't look good either.  
Reply
post #20 of 85
Quote:
Originally Posted by Rogifan View Post

I just visited the Verge and didn't see one story about Microsoft's potential layoffs. There was however a story about senator Cory Booker taking selfies with other senators. Wow is that site going downhill.

The Verge mentioned it almost a week ago.
http://www.theverge.com/2014/7/10/5887143/satya-nadella-microsoft-ceo-employee-email
melior diabolus quem scies
Reply
melior diabolus quem scies
Reply
post #21 of 85
Quote:
Originally Posted by Gatorguy View Post

The Verge mentioned it almost a week ago.
http://www.theverge.com/2014/7/10/5887143/satya-nadella-microsoft-ceo-employee-email
I'm referring to the Bloomberg report that specifically mentioned layoffs might come this week. That story hit yesterday evening.
post #22 of 85
Microsoft has a lot of incredible talent in the development ranks that will have no problem finding a spot at competitive companies. I wish them all the best.

This is plain and simple a textbook case of disruptive innovation. Microsoft could not bring themselves to react quickly to the iPhone, iPad, and Android threat because it was not in line with their cash cow business that was still raking in the money hand over fist. When they finally did react they offered a weak compromise solution that tried to hang on to their past, with a tweener tablet solution that tried to pull traditional PC attributes into the tablet domain and a desktop solution that tried to pull tablet attributes into the PC domain. Neither compromise really works.

The future of Microsoft is as uncertain as any other large company at the crossroads between fading past glory and an uncertain future. They could absolutely fail just as quickly as DEC, Kodak, RCA, Allis-Chalmers, etc., have failed. Windows, Office, and the server platforms are okay, but not enough to keep 130k employees profitably engaged. The Nokia merger was a huge mistake. When all is said and done nobody on either side of that fiasco will walk away a winner except those who have already taken their money and ran, Mr Balmer included.

The next coffin nail for Microsoft will come from Google. The Chrome OS is poised to destroy Microsoft's margins on desktop OS licensing. Microsoft will put up a valiant fight but they will eat their own babies trying to buck the inevidable and end up losing anyway. Windows 8 soiled the Windows empire. Retreating back to being a conventional desktop OS won't restore them either. It would only prove that they really have no new ideas for moving their vision of a desktop OS beyond where it was with Windows 7, which was really just a trimmer version of Windows Vista, which was also an evolutionary change from XP and every Windows version before it. Office is basically in the same boat. Bring in someone from 1992 and Windows 3.1 versions of Office and set them in front of Office 2013 and they will not experience much in the way of functional improvements. The toolbar is incredibly large and there are no more 30 tab dialogs, but the useful feature set is little changed.

The bottom line is that Microsoft is (structured to be?) an incredibly strong follower but they are borderline inept as a leader. Nobody is handing Microsoft the kind of deal of a lifetime that IBM gifted them with. Following Apple is no longer good enough. Too many others are ahead of them in that department.

What's left for Microsoft? In my humble opinion the perfect merger for them would be Cisco. They could own the Internet of Everything on all fronts from hardware to software to servers to infrastructure to services and applications. The problem is that Cisco is so big itself that retaining any value in such a mega merger would be challenging, as would getting by regulators. But I see Microsoft having much more upside in that arena than doing UFC cage matches with Google or wars of commodity attrition with the Asian upstarts who we haven't even heard of yet. Whatever they decide they have to leverage their strengths in their IP and workforce rather than laying off good people, riding the cash cows who aren't looking as healthy as they once did to death, and selling off IP. Once they start selling off their IP like Kodak did you may as we'll start making arrangements for calling hours and flowers.
post #23 of 85
Quote:
Originally Posted by tbsteph View Post

Wow! This article contains enough hyperbole, false statements and plain BS to even amaze James Carney. Maybe AppleInsider should just stick to reporting Apple news and forgo commenting on Microsoft - since their bias is so blinding reality is undiscoverable.


Care to elaborate and provide some examples?

 

 

Quote:
The reason why they are analysts is because they failed at running businesses.

 

Reply

 

 

Quote:
The reason why they are analysts is because they failed at running businesses.

 

Reply
post #24 of 85
Quote:
Originally Posted by Rogifan View Post

I just visited the Verge and didn't see one story about Microsoft's potential layoffs. There was however a story about senator Cory Booker taking selfies with other senators. Wow is that site going downhill.

 

That site is terrible, I never visit it anymore. It's also full of political stories and other nonsense that have nothing to do with tech at all. I'm not interested in their screwy political agendas and their biases.

 

The site is also very heavy, and everything takes time to load.

post #25 of 85
Quote:
Originally Posted by tbsteph View Post

Wow! This article contains enough hyperbole, false statements and plain BS to even amaze James Carney. Maybe AppleInsider should just stick to reporting Apple news and forgo commenting on Microsoft - since their bias is so blinding reality is undiscoverable.

What article did you read?  I see 4 paragraphs that lay out some facts about the size of MS's workforce and some reports that thousands of them are due to be let go--after pointing out that 30,000 were added recently as part of an acquision.  Where is the hyperbole and fact statements?

post #26 of 85

Anyone know how many employees Apple has (to compare to MS's 130,000)?

post #27 of 85
Quote:
Originally Posted by DewMe View Post

I wish them all the best.

 

I don't. I don't really care what happens to them. This is the same company that held an actual funeral for the iPhone.

 

As for their current problems, anybody could have seen it coming. I said it years ago on this site.

 

Windows 8 was a terrible concept and so was their "convertibles". Trying to combine touch with a traditional OS, and force it down user's throats was a stupid idea. 

post #28 of 85
Quote:
Originally Posted by malax View Post
 

Anyone know how many employees Apple has (to compare to MS's 130,000)?

50,250 in the US.

https://www.apple.com/about/job-creation/

post #29 of 85
Keep up the good work Satya Nadella. /s
post #30 of 85
Quote:
Originally Posted by TheOtherGeoff View Post
 

long in gov't/corp space is 7 years.   7 years ago the iPhone was introduced.   Seems like yesterday.

 

What I'm saying is, Windows Server die like AS/400 did for IBM (that was 2000 when they killed it).  Windows Server is less like a mainframe, because IBM is still making mainframes.  Is there a compelling reason for for Windows Server?  Other than Active Directory?  which is one VPN away from being served in the cloud.  


IBM didn't kill the AS/400.  Get your facts straight.  I (we) do lots of "AS/400" work.  IBM did not kill-off the AS/400.  It has been renamed to the i5, iSeries, and now the "IBM i" . There are even cloud-based "AS/400" services too.  We're purchasing another "AS/400" from IBM this year.  
 

Those that have use it, swear by them.  The big shops know that.  There are plenty of big-name operations out there using the systems reliably, and at far less cost in the long-term than Intel-systems.  We've have iPad apps that interface directly with our AS/400's, and the users have zero clue (or care) what's running the back-end.

They're awesome platforms.  It's just a pity that IBM does a really lousy job of putting the brand out there.  It's hard to compete with the commodity Wintel market and universities focusing mainly on PC systems.  
 

post #31 of 85
Well my old school mate has just returned to the UK after 11 years working mainly in Microsoft's mobile devices division and now job sampling ( UK metaphore for unemployed)...he just resigned. According to him, in the last 6years, the amount of crud thrown at the wall, defies belief. Nothing sticks. One of his 'major pushes' was knifed after just 9 weeks due to a so-called 'clerical error' induced by management changes! and another got cancelled for quasi- religious reasons?...really...his words. Said he just wanted to go walkabout, but decided to make it permanent instead.
Allowing for hyperbole, disillusion...and yes, a measure of homesickness, it doesn't sound like much fun in the skunk works dept. 1confused.gif
post #32 of 85
Quote:
Originally Posted by Apple ][ View Post

That site is terrible, I never visit it anymore. It's also full of political stories and other nonsense that have nothing to do with tech at all. I'm not interested in their screwy political agendas and their biases.

The site is also very heavy, and everything takes time to load.
A lot of people have complained about the quality going downhill. Lately their stories are either pop culture stupidity, blatantly political or Google's PR arm. And the headlines De more and more of the click bait nature. A recent headline was "how to look cute and not get raped". Complain about the quality of articles in the comments section and you're likely to get banned.
post #33 of 85
Quote:
Originally Posted by Apple ][ View Post

50,250 in the US.
https://www.apple.com/about/job-creation/
I wonder how many of those are retail. According to Apple's 10-K, as of September 2013 42,800 of Apple's employees were retail. If you strip them out Apple actually has less employees than Google.
post #34 of 85
Quote:
Originally Posted by Rogifan View Post


I wonder how many of those are retail. According to Apple's 10-K, as of September 2013 42,800 of Apple's employees were retail. If you strip them out Apple actually has less employees than Google.

It says on the Apple site that 26,000 of them are U.S. retail employees.

 

I'm not sure if that's in addition to the 50,250 or if the 50,250 includes retail.

post #35 of 85
Quote:
Originally Posted by Apple ][ View Post

It says on the Apple site that 26,000 of them are U.S. retail employees.

I'm not sure if that's in addition to the 50,250 or if the 50,250 includes retail.
Apple's 10-K said as of September 2013 they had 80,300 of which 42,800 were retail employees. So that 50,250 must include retail employees. Just further illustrates how bloated Microsoft is. No way is their retail staff that large.
post #36 of 85

I wouldn't want to be at MS right now. The low hanging fruit is a shiny, new OS that apparently looks and functions like Windows XP. If MS accomplishes this with Windows 9, they look like they are running towards yesterday. But they hang on to the enterprise market and can move a few more Office products.

 

It's hard to believe how they could have miscalculated so badly on mobile. A whole slew of nerds with no vision.

post #37 of 85
Quote:
Originally Posted by Rogifan View Post


Apple's 10-K said as of September 2013 they had 80,300 of which 42,800 were retail employees. So that 50,250 must include retail employees. Just further illustrates how bloated Microsoft is. No way is their retail staff that large.

Microsoft's employees grew by 25,000 when you add in the Nokia employees.

 

According to Bloomberg, Nadella is ready to reduce Microsoft’s workforce and begin the process of integrating Nokia’s Devices and Services division (which was officially acquired earlier this year). Microsoft currently has over 127,000 employees (including the roughly 25,000 that it added from Nokia) and Bloomberg’s sources indicate that more than 5,800 positions will be cut. - See more at: http://www.dailytech.com/Report+Microsoft+Set+to+Announce+Sweeping+Job+Cuts+This+Week/article36220.htm#cmt949582

post #38 of 85

I don't know why it is so hard for Microsoft to compete with Apple... aside from their absolute blindness to what consumers want. A turn around for Microsoft seems easy. 

post #39 of 85
Quote:
Originally Posted by Apple ][ View Post

It says on the Apple site that 26,000 of them are U.S. retail employees.

I'm not sure if that's in addition to the 50,250 or if the 50,250 includes retail.

"Apple yesterday filed its 2013 10-K annual report with the U.S. Securities and Exchange Commission, offering some insight into how the company has grown over the past year. Among the interesting tidbits included in the report:

- Apple's employee headcount grew to 80,300 full-time equivalents, up from 72,800 at the end of fiscal 2012. Nearly all of that growth was outside of the company's retail division, which grew by only 400 to 42,800 full-time equivalents."
http://www.macrumors.com/2013/10/30/apples-2013-annual-report-inside-the-numbers-on-employees-retail-stores-and-more/

So it would look like a bit over half of Apple's employees may be in retail.

http://www.sec.gov/Archives/edgar/data/320193/000119312513416534/d590790d10k.htm
melior diabolus quem scies
Reply
melior diabolus quem scies
Reply
post #40 of 85
Quote:
Originally Posted by Gatorguy View Post

"Apple yesterday filed its 2013 10-K annual report with the U.S. Securities and Exchange Commission, offering some insight into how the company has grown over the past year. Among the interesting tidbits included in the report:

- Apple's employee headcount grew to 80,300 full-time equivalents, up from 72,800 at the end of fiscal 2012. Nearly all of that growth was outside of the company's retail division, which grew by only 400 to 42,800 full-time equivalents."
http://www.macrumors.com/2013/10/30/apples-2013-annual-report-inside-the-numbers-on-employees-retail-stores-and-more/

So it would look like a bit over half of Apple's employees may be in retail.

http://www.sec.gov/Archives/edgar/data/320193/000119312513416534/d590790d10k.htm

 

Good info, but I think that it's important to point out that I believe the numbers that you are quoting is for Apple worldwide, and not just the US. 

New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: General Discussion
AppleInsider › Forums › General › General Discussion › Microsoft may announce biggest round of layoffs in company history this week - report