Slashdot Mirror


Massive Job Cuts Are Reportedly Coming For Microsoft Employees

mrspoonsi (2955715) writes with news that Microsoft is reportedly planning a major staff reduction that would top Steve Ballmer's record 5,800-head layoff in 2009. From the article: The reductions — which may be unveiled as soon as this week — will probably be in areas such as Nokia and divisions of Microsoft that overlap with that business, as well as marketing and engineering, said the people, who asked not to be identified because the plans aren’t public.

26 of 300 comments (clear)

  1. Who couldn't see this coming? by Virtucon · · Score: 4, Interesting

    Domination in the desktop eroding. Products not making a big splash in the market. Shareholders restless and right after an announcement by the new CEO about agility and business realignment. All of these things add up to reductions in force in areas where they're not profitable. It'll be interesting to see if the cuts will be across the board.

    --
    Harrison's Postulate - "For every action there is an equal and opposite criticism"
    1. Re:Who couldn't see this coming? by lord_mike · · Score: 5, Insightful

      And yet, they are still making gobs of money. In fact, they are more profitable than ever. Moves like this don't really help anything.. not even the bottom line, since the massive cuts crush morale and limit the ability of the company to innovate to keep ahead of the competition.

    2. Re:Who couldn't see this coming? by Virtucon · · Score: 4, Insightful

      Yeah it doesn't make sense but the TFA says the Nokia handset folks but I'd have to think about the memo with the buzzword generator on at 11 it'll be across the board to wake up the troops. Sure, it'll crush morale and it'll negatively effect the processes that are in place but unfortunately it seems more and more that CEOs want to cut themselves to eek out as much profit as possible. Forget new products, innovation is something they'll buy and integrate.

      --
      Harrison's Postulate - "For every action there is an equal and opposite criticism"
    3. Re:Who couldn't see this coming? by Archangel+Michael · · Score: 5, Insightful

      To be honest, this is Nokia's own doing. Hiring MS drone to take down the enterprise was pretty stupid. It was the least expensive option they had. It would have been better to pick one of the three lanes they had, and stuck with it. They went a fifth lane when that wasn't really a good option (fourth lane being Android). Even Microsoft is realizing that Windows Mobile / Phone / Whatever is not going to win in the market.

      The result is typical short sighted vision of CxOs. But, I bet it looked good on paper, and instead of listening to the asshole who is usually right, they listened to the nice guy who lies.

      --
      Agent K: A *person* is smart. People are dumb, stupid, panicky animals, and you know it.
    4. Re:Who couldn't see this coming? by rickb928 · · Score: 5, Interesting

      FWIW...

      I work for a S&P 500 financial corporation. I've been here through multiple major layoffs, one a 10% global layoff, the other a 20% global layoff. One in response to the unpleasantness in 2008-9, the other in response to business decisions to refocus and drive growth by investing in new markets and new products, necessitating divesting and letting a lot of good people go that simply did not do what was needed at the time.

      It's a familiar and trite complaint that layoffs serve the C-level exclusively, but I can easily see Microsoft choosing to remove distractions, reduce current expenses, and even take the opportunity to shake the tree and rid itself of (real or imagined) low-hanging underperformers.

      IBM did this repeatedly, and is still doing it, as large corporations regularly have to sift their work force and reset priorities, UNLESS they are consistently evaluating their strategies, have truly strategic planning that looks beyond the horizon, and work from a position of true knowledge of their business and performance. Microsoft is regularly accused of failed strategy and poor performance. And they can certainly be accused of being too big to be well managed, especially in the eyes of the minions who live with the decisions.

      Microsoft's market(s) is(are) difficult places to predict performance. Intangibles rule in that space, and failure is the norm. Success if fleeting. Windows is Microsoft's bedrock, so as the marketplace starts to embrace nontraditional devices that need not use Windows, Microsoft should be looking beyond traditional and on to emerging opportunities. Can they move quickly enough to outflank competitors? Google is huge, but acts like a startup on specific projects. From my viewpoint, Kinect is the last Microsoft project that could be described as nimble. There are some interesting things they show off, but none yet ready for a product. Surface is just not floating anyone's boat yet. Nokia was dead on arrival, so losing that is admitting they could not resuscitate it with Windows Phone, the poster child for losing the traditional to the nontraditional. Ask me some time about my new set top box, running Microsoft Mediaroom, and closed captioning. At least Microsoft left this in marginally perfect state, but another idea they had to abandon.

      Harrison's Postulate confirmed. Enjoy.

      --
      deleting the extra space after periods so i can stay relevant, yeah.
    5. Re:Who couldn't see this coming? by Casualposter · · Score: 4, Informative

      "Irrelevant. Companies don't keep employees because they are affordable, but because they are profitable. If an employee is not adding net value, it is better for both Microsoft and the overall economy for that person to be employed elsewhere."

      Not quite true. Profitable companies reduce work force to compensate the CEO and the company elite, while spinning the upcoming company death spiral as good for the stock price because costs are reduced. Reducing the work force won't improve moral, change the culture, create new products, or improve the long term prospects of the company. Anyone in the workforce who can leave will leave. What it will do is boost the stock price long enough for the current company elite to sell their stock at inflated prices and justify the ginormous bonuses they will get right before the plunge into financial crises - at which time they will pull the golden parachute and land in some other cash rich company.

      --
      Creative Spelling Copyright (2002). May use without Persimmons
    6. Re:Who couldn't see this coming? by Anonymous Coward · · Score: 4, Informative

      Exchange is laughable, only people who care about certifications use it, and they are the laughing stock of people who actually use servers. There is a reason 99% of all servers are Unix based.

      And Sharepoint has been a nightmare for everyone who's had to deal with it. I replace Sharepoint solutions with open source ones (often Drupal, as it performs easily 100x better on equivalent hardware, and can talk to an AD quite easily), and every customer is very satisfied.

    7. Re:Who couldn't see this coming? by PolygamousRanchKid+ · · Score: 5, Insightful

      IBM did this repeatedly, and is still doing it, as large corporations regularly have to sift their work force and reset priorities, UNLESS they are consistently evaluating their strategies, have truly strategic planning that looks beyond the horizon, and work from a position of true knowledge of their business and performance. Microsoft is regularly accused of failed strategy and poor performance. And they can certainly be accused of being too big to be well managed, especially in the eyes of the minions who live with the decisions.

      In the early '90s, when IBM nearly burned down, fell over, and sank into the swamp, Lou Gerstner came in as a new CEO, and also oversaw massive layoffs, which helped it get back on track. However, a lot of people he let go were top executives, who were "yes men" to the old CEO, John Akers.

      It would do Microsoft a world of good if it got rid of their Ballmer retinue who are still holding key positions in Microsoft. Just letting go a bunch of minions is not going to cut at the root of the problems at Microsoft.

      --
      Schroedinger's Brexit: The UK is both in and out of the EU at the same time!
    8. Re:Who couldn't see this coming? by DickBreath · · Score: 5, Informative

      > And yet, they are still making gobs of money. In fact, they are more profitable than ever.

      I remember in the late 1970's when IBM people were laughing at these 'toy' microcomputers. HA HA! Those toys will never be like real computers. Certainly not a threat to IBM which is making gobs of money. In fact, IBM is more profitable than ever.

      IBM introduced a PC in 1981. Thinking they might sell up to two million. By the mid 1990's IBM had lost the PC market, abandoned the PS/2 attempt to re-monopolize it, and eventually got out of the PC business completely. Before the end of the 1990's IBM had re-invented itself. Think the same thing won't happen to Microsoft? You may be too young to remember, but in the 1980's, even by the late 1980's it was completely laughable to even consider that IBM might find itself on hard times. But it happened. And just a few years ago it was laughable to suggest that Microsoft might lose its industry dominance. Not so much laughable anymore.


      > Moves like this don't really help anything.. not even the bottom line, since the massive cuts crush morale and limit the ability of the company to innovate to keep ahead of the competition.

      Moves far more radical than this may be the only way Microsoft stays around in the long term. We'll see what Microsoft looks like in a decade.

      --

      I'll see your senator, and I'll raise you two judges.
    9. Re:Who couldn't see this coming? by ShanghaiBill · · Score: 5, Interesting

      You forget that it affects morale.

      It can affect morale in either direction. People that work hard tend to resent the deadwood. If the layoffs are carefully targeted, and employees see long term problems being addressed, then morale can go up. The important thing is to make the cuts deep enough that you don't have to come back for a second round. Nothing kills morale more than the uncertainty of waiting for the next salami slice.

      I once worked for a CEO what didn't believe in firing people. Employees realized they could spend time gossiping in the break room, or working on their own side projects, while ambitious employees quit and went elsewhere. Morale was horrible, everyone thought the CEO was an idiot, and the company went bankrupt during the dotcom implosion.

    10. Re:Who couldn't see this coming? by Slime-dogg · · Score: 4, Informative

      Exchange is laughable, only people who care about certifications use it, and they are the laughing stock of people who actually use servers. There is a reason 99% of all servers are Unix based.

      And Sharepoint has been a nightmare for everyone who's had to deal with it. I replace Sharepoint solutions with open source ones (often Drupal, as it performs easily 100x better on equivalent hardware, and can talk to an AD quite easily), and every customer is very satisfied.

      Many business on the MS platform will go all-in with Exchange, primarily because of the level of integration with all products that MS offers. To call those that use Exchange "laughing stock," is essentially a troll.

      Sharepoint offers a lot more than Drupal does to a business that employs actual developers, as well as those that understand how to leverage Sharepoint with Analysis Services and PowerPivot. There is also a lot more extensibility of workflows with less dev time than Drupal. Companies probably shouldn't bother with Sharepoint unless they actually care about those things, because it's essentially an expensive CMS without them.

      --
      You need to restart your computer. Hold down the Power button for several seconds or press the Restart button.
  2. of course by Anonymous Coward · · Score: 5, Funny

    They have to pay for microsoft licenses for each employee. Of course they are going bust.

    1. Re:of course by EXTomar · · Score: 4, Informative

      I don't doubt that if you are a large company the licensing fees are very reasonable but for a small scale company that has to make purchases ad-hoc, MS Licensing is a struggle and costs a lot. I have been at multiple smaller companies with an ops budget so tight, development could not afford to buy more cals of Windows Server let alone the multiple you need because of the (artificial) configuration requirements. This requires the annoying situation where you setup multiple machines but do not activate them that will ultimately lock up when time expires requiring a full wipe and install.

      This "small scale side" of the market been Microsoft's weakness for awhile and where Linux shines. Maybe there is a program or small scale license level that allows for these but they don't advertise it well enough for me to know let alone a scrounging CEO acting like a CTO.

  3. Dropping the Xbox? by timrod · · Score: 4, Interesting

    I know when Ballmer resigned as CEO, there were members of Microsoft's board calling for them to drop the Xbox division entirely because it wasn't profitable enough. The article mentions that people on the marketing teams for the Xbox are among those being cut, and I'm wondering if this isn't MS taking the first steps to selling off the Xbox division to someone else.

    1. Re:Dropping the Xbox? by lord_mike · · Score: 4, Insightful

      So they get rid of their most successful consumer product.... the thing that puts the word "Microsoft" in people's houses? That makes sense--typical MBA driven, stupid, short sighted decision that would be so Microsoft. I'd love for Google to buy Xbox. They would do some pretty cool things with that. Microsoft would never sell to them. Samsung, maybe? They'd love to get a bigger piece of the living room, and they might do some cool things with it!

    2. Re:Dropping the Xbox? by nine-times · · Score: 4, Interesting

      So they get rid of their most successful consumer product....

      "Successful" in that it sold a lot of units. Maybe not so successful in terms of profits. I don't know what the current state of the balance sheet is, but as of a couple of years ago, the entire XBox line was still in the red. To begin with, they sell the hardware as a loss-leader. Plus they spent a bunch of extra money on the first generation to break into the market, so they were expecting the XBox360 to be successful enough to pay for those losses. Then the XBox360 was riddled with hardware failures, so Microsoft lost a ton of money on replacements. At one point, I remember it was estimated that almost 50% of all XBox360 units had manufacturing defects requiring the units be replaced.

      I don't remember exactly. Everything I've written above is pulled out of my fuzzy memory. The point is, the XBox was hardly the enormous success you might be imagining.

  4. Re:You don't need so many workers by MickyTheIdiot · · Score: 4, Funny

    Watch your mouth. Broken microsoft products account for massive amount of I.T. payrolls world wide!

  5. Not Surprising by Anonymous Coward · · Score: 5, Insightful

    Not surprising at all. When a company buys another company, there's going to be a lot of jobs that are duplicated with the efforts of the buyer. Sure, there's an increased workload but nowhere near enough to justify continuing to pay people when you already have people able to do the job. And, when you have two people able to do one job, one of whom works for you and one of whom works for that other company that you just bought, the vast majority of time it's the outside who is let go. Sad reality of consolidation of companies but it isn't surprising at all.

    In other words, if your company is ever bought out, you need to ask yourself if there's already someone at the buyer who's able to do your job. If the answer is "yes", you need to start polishing off your resume and getting in touch with head hunters because there's a high likelihood of you being out of work soon.

  6. H1B by Major+Blud · · Score: 5, Insightful

    How much you wanna bet that they continue to ask for H1B candidates after the next round of layoffs?

    --
    If you post as Anonymous Coward, don't expect a reply.
  7. Re:Good by BasilBrush · · Score: 4, Insightful

    Fire people in order of how badly they need to be fired, for example.

    Over an extended period of time? That's the worst thing you can do for morale. For sure fire the worst people, but you have to do it quickly and get it over with. Otherwise the rest feel that they have the sword of damocles continually hanging over them.

  8. Re:Chain effect by dpbsmith · · Score: 5, Interesting

    Indeed. I worked in a Fortune 500 company--I arrived in the middle of a new CEO's "three-year turnaround plan," and shortly thereafter he was replaced by another CEO and shortly thereafter the company collapsed with stunning speed.

    One of the things that was interesting was seeing the effect of a layoff from inside. It isn't just morale, although since layoffs were done on the "night and fog" principle--they didn't post lists of those laid off--for about two days after each layoff, all worked stopped as everyone else in the company spent their time telephoning everyone they knew to see if they were OK.

    But there was also an immediate, precipitous problem with any kind of customer support or service. The air was full of overheard conversations. "Let me put you on hold. Uh, Marie, this customer wants to order a license for a vestibulator spracket. Who handles that?" "It used to be Bob, but he was laid off yesterday. Uh, Lewis, do you know?" "No idea, maybe his manager would know. Let me see, his manager was Kelly Sundstrom." "Oh, she's no longer with the company..."

    No joke. Customers wanted to buy stuff and couldn't. Customers with service contracts couldn't get gear fixed. The stock price went up because at that time Wall Street seemed to love layoffs, but there were, actually, reports in the IT press about customers being disgruntled at bad service, and Wall Street never seemed to connect THAT with the layoffs.

  9. Re:Good by afidel · · Score: 4, Interesting

    Yeah well, what about something in between? Fire people in order of how badly they need to be fired,

    That's what Cisco does, they do regular bottom 5% cuts where those who are ranked in the bottom 5% on their performance reviews are let go. Groups that are performing well and are full of talented people are sometimes allowed to take their 5% from open positions, but only with the approval of an SVP or above. (at least this was the practice when I was there in the early 2000's)

    --
    There are 4 boxes to use in the defense of liberty: soap, ballot, jury, ammo. Use in that order. Starting now.
  10. Re:You don't need so many workers by Chrisq · · Score: 5, Funny

    Actually, many people don't want to work with Linux, given the abysmal choices of desktop environments, each with their own style of suck.

    I've one word for you. Metro.

  11. Microsoft's only commodity is ... by CaptainDork · · Score: 4, Interesting

    ... stocks.

    They sell stocks. They cater to the shareholder and that's a money-grubbing bunch of folks.

    Look at Facebook. They are making decisions that are radical departures from their pre-IPO culture. It has to be.

    Facebook, too, sells stocks.

    Knowing that explains the business model and strategy of public corporations.

    --
    It little behooves the best of us to comment on the rest of us.
  12. Windows 8 by xdor · · Score: 4, Insightful

    Blame Julie Larson-Green.

    She's responsible for this and the awful Office ribbon: perfect examples of graphic design stomping all over useability

    Why she's still around: I think this is a case of people being swayed by her personal "charisma" and not facing the fact that Windows 8 "metro" is a gimmicky circus act that literally gets in the way of using Windows. Just terrible!

  13. Terminating employees = legal mine field by sjbe · · Score: 4, Insightful

    Only if you keep it a big secret why the people were fired.

    Explaining why someone was let go is a great way to get yourself sued if you aren't super careful. Particularly if the person terminated is a member of a protected group like a minority. Terminating employees is (almost) never good for morale but if you have to let a lot of them go then you want to do it all at once, explain in general terms the business reason why but no specifics about a particular person and explain why you will not have to let anyone else go after this. I've seen first hand what happens to companies that try the slow band-aid removal method and the results are not pretty.

    If they were fired for an actual business reason, that reason should not need to be kept a secret.

    The reasons usually aren't a secret (office gossip might be the only thing that travels faster than light) but unless it is something like "we are getting out of this line of business" you have to be VERY careful about what you say. Any competent HR pro will tell you that terminating employees can be something of a legal minefield if you don't do it right. This includes employees that were terminated For Cause. Some of this caution is unfortunately absurd but it is equally necessary.