Slashdot Mirror


Microsoft Lays Off 2,100, Axes Silicon Valley Research

walterbyrd writes with news of Microsoft layoffs. Microsoft Corp will close its Silicon Valley research-and-development operation as part of 2,100 layoffs announced on Thursday, as it moves toward its new CEO's goal of cutting 18,000 staff, or about 14 percent of its workforce. News of the closure of the Microsoft Research lab at the company's campus in Mountain View, California, was first made public on Twitter by employees. The company later confirmed the move and said it would involve the loss of 50 jobs.

64 of 109 comments (clear)

  1. No more cash in the bank? by suso · · Score: 4, Funny

    Back around 2000 when Microsoft had something like $100 billion in the bank I said that with that kind of money, they could afford to make no income and still pay their 40,000 or so employees at the time for the next 13 years. I wasn't serious though.

    1. Re:No more cash in the bank? by ShanghaiBill · · Score: 4, Insightful

      I do wish it didn't involve reducing the size of their research operations.

      Why? Microsoft has a long history of hiring many top researchers, and then doing very little with the results. It is much better for those researchers to be more productively employed elsewhere. The researchers will have little trouble finding new positions in Silicon Valley, where talent is in high demand.

    2. Re:No more cash in the bank? by Tough+Love · · Score: 2

      Back around 2000 when Microsoft had something like $100 billion in the bank I said that with that kind of money, they could afford to make no income and still pay their 40,000 or so employees at the time for the next 13 years.

      A basic fact of business is that when a company has no income but does have assets, the time has arrived to liquidate those assets and distribute the proceeds to shareholders. A minor variation of that reaches the same conclusion in the face of low, as opposed to zero, profitability.

      --
      When all you have is a hammer, every problem starts to look like a thumb.
    3. Re:No more cash in the bank? by Anonymous Coward · · Score: 4, Interesting

      Google tells me they have $84 billion dollars and spent $37 billion in the past year.

      Google also tells us that Microsoft is one of the heaviest lobbyists for increases to H1Bs. That should tell you how ethical this plan to layoffs workers really is.

    4. Re:No more cash in the bank? by K.+S.+Kyosuke · · Score: 2

      Why? Microsoft has a long history of hiring many top researchers, and then doing very little with the results.

      Well, as long as they publish papers, who cares if they're doing very little with the results? Someone else is going to do it for them.

      --
      Ezekiel 23:20
    5. Re:No more cash in the bank? by bingoUV · · Score: 2

      Since they are employed by Microsoft, no one will be able to do much with the results for 14 years. Microsoft unable because they are generally inept, and others unable because Microsoft will ask their soul in return for patent license.

      --
      Bingo Dictionary - Pragmatist, n. A myopic idealist.
    6. Re:No more cash in the bank? by RabidReindeer · · Score: 2

      Back around 2000 when Microsoft had something like $100 billion in the bank I said that with that kind of money, they could afford to make no income and still pay their 40,000 or so employees at the time for the next 13 years.

      A basic fact of business is that when a company has no income but does have assets, the time has arrived to liquidate those assets and distribute the proceeds to shareholders. A minor variation of that reaches the same conclusion in the face of low, as opposed to zero, profitability.

      What a quaint, antiquated idea. More likely, management will do something like use those assets as leverage to buy another company, lay off thousands, collect bonuses, then sell off the second company, rinse, repeat.

      Or sell itself to some other company, collect golden parachutes and/or high-level positions at the other company (with golden parachutes), award themselves bonuses. lay off thousands, etc. etc.

      Modern business can be so depressing.

    7. Re:No more cash in the bank? by DuckDodgers · · Score: 2

      Excellent point. Except of course that Microsoft is currently wildly profitable, 22 billion in net income this past year. If the total cost of each employee in the layoff is a quarter of a million dollars, the layoff boosts Microsoft profitability less than 3% when profits are already tremendously high.

      Now, I'm an open source software fan that is becoming more and more aligned with the GNU FSF fanatics as I get older. So part of me is inclined to think a move by Microsoft to sacrifice their chance to be relevant in 2030 in order to boost profitability 3% today is wonderful.

      But I think the reduction of pure researchers is a sad event for the industry as a whole, and the world as a whole. By definition, most pure research divisions don't come out with anything useful to a company. But every once in a while they do, and that's the point - you accept the 500 projects that give you nothing of value in return for the few that make the difference between staying ahead of other innovators and being left behind.

      Among other things, Microsoft Research pays Simon Peyton Jones, one of the lead developers on the Haskell language specification and the most popular implementation, the open source Glasgow Haskell Compiler. Haskell may never become a popular language, but it strongly influenced the design of languages like F# and Scala and had a lesser but significant impact on many others. Now that research occurs in Microsoft's Cambridge Research center, so maybe Peyton Jones did not or will not get the axe too. But there are hundreds of other publications and projects in a number of fields to come out of Microsoft research, and whether we like it or not many open source projects have been positively changed by the influence of those ideas.

      Seriously, I consider keeping Microsoft Research one of the few things that Steve Ballmer clearly got right, and the first thing that Satya Nadella unequivocally got wrong.

    8. Re:No more cash in the bank? by K.+S.+Kyosuke · · Score: 1

      I don't mind them patenting it; I can use it anyway. If anything, it removes US competition! Who in his sane mind would complain about that?

      --
      Ezekiel 23:20
    9. Re:No more cash in the bank? by TheGratefulNet · · Score: 2

      do you live here (bay area)? I do. been here several decades.

      the valley does NOT want talent. what do they want? CHEAP LABOR. quality is not important, insight is not important, even code quality is not important. speed and price is all that matters.

      I wish I was kidding... ;(

      --

      --
      "It is now safe to switch off your computer."
    10. Re:No more cash in the bank? by bingoUV · · Score: 1

      They patent in multiple countries. Congratulations on being exempt from patent laws.

      --
      Bingo Dictionary - Pragmatist, n. A myopic idealist.
    11. Re:No more cash in the bank? by K.+S.+Kyosuke · · Score: 1

      Luckily, I don't work in the field of hardware. So this really isn't one of my worries.

      --
      Ezekiel 23:20
    12. Re:No more cash in the bank? by DuckDodgers · · Score: 1

      Linux isn't too complicated if you're taking someone that has never used a computer before and teaching them how to use it. Then it's more or less even with Windows. But across the US, 95% of the people with computer experience have used some form of Windows before, fewer than 5% of the people with computer experience have used Linux. So a company looks at paying Microsoft maybe $500 per employee per year in license fees versus the cost of retraining their employees on Linux, and decide it's cheaper to use Microsoft products.

      I don't like it, but it's reality. Microsoft isn't easier, it's familiar. But the end result is the same - they continue to dominate business software use and the richest company in the world built on a fully open source software model, Red Hat, makes literally 1% of Microsoft's revenue.

  2. Year of Linux on the desktop? by penguinoid · · Score: 1, Insightful

    Maybe Nadella got tired of hearing about the year of Linux on the desktop, and decided to finally make it happen? Anyhow, good luck without your researchers. I hope it was the ones responsible for Windows 8.

    --
    Don't waste your vote! Vote for whoever you want, unless you live in a swing state it won't matter anyways
  3. How many layoffs overseas? by Anonymous Coward · · Score: 1

    Any layoffs in Hyderabad? ... just asking.

    1. Re:How many layoffs overseas? by Anonymous Coward · · Score: 1

      Yes. They're laying them all off in Hyderabad and Bangalore so they can import them over here as H1-B's. What do you think the H and B stand for??

    2. Re:How many layoffs overseas? by __aaclcg7560 · · Score: 1

      HB = Harry's Buffet

  4. Let's spend 2.5 billion on Minecraft by Anonymous Coward · · Score: 5, Insightful

    The employees we could have paid with that 2.5 billion are a useless drag on our bottom line.

    1. Re:Let's spend 2.5 billion on Minecraft by Anonymous Coward · · Score: 1

      they have to make room on the payroll for the java developers that they need to rehire (that were let go some 15 years ago as sun v microsoft ended)

    2. Re:Let's spend 2.5 billion on Minecraft by UnknownSoldier · · Score: 1

      Microsoft buying Mojang (Minecraft) makes zero financial sense. Notch and 2 other founders left, so I'm not sure how they expect to make their money back ...

    3. Re:Let's spend 2.5 billion on Minecraft by DrGamez · · Score: 1

      How much work do you think Notch and the other two founders DO on Minecraft on a daily basis?

      How many pieces of merch do they make for Minecraft?

      How many servers via Minecraft Realms do they sell a month?

      I'm not sure you have any idea how Minecraft operates.

  5. Re:Employer says Thank You by blue+trane · · Score: 2, Insightful

    When you say "intellect-nots" and talk of shortages of "smart employees", you mean there are too many people who don't want to code intrusive ads to sell sell sell, right? Maybe you're the one who's not so smart, looking for robotic employees you're too stupid to code.

  6. Wait for it in 3...2...1... by Tablizer · · Score: 5, Insightful

    "We desperately need more H1B's to manage the staff reduction! We cannot afford to retrain our existing employees in staff reduction management technologies." -MS

    1. Re: Wait for it in 3...2...1... by DigiShaman · · Score: 1

      Are they even an American company anymore?! Like IBM, Mocrosoft is practically owned operated out of India!

      --
      Life is not for the lazy.
    2. Re:Wait for it in 3...2...1... by __aaclcg7560 · · Score: 1

      We desperately need more H1B's to manage the staff reduction!

      I was working as a lead tester for a video game company that decided every video game must appear on ALL platforms. We were hiring more testers to implement this strategy that ultimately failed, as each game looked like an obvious Sony Playstation 2 port on Microsoft xBox and Nintendo GameCube. Lead testers were filling out paperwork to justify hiring more testers to fill out more paperwork. to justify hiring more testers. I bailed out a year before the company went bankrupt.

    3. Re:Wait for it in 3...2...1... by Tablizer · · Score: 1

      Go into the bankruptcy paper-work business. If you ever have to file bankruptcy, you'll be ready.

    4. Re:Wait for it in 3...2...1... by __aaclcg7560 · · Score: 1

      Been there, done that. I was out of work for two years (2009-2010) and filed for Chapter Seven bankruptcy in 2011.

  7. How many H1-Bs are they trying to get? by Anonymous Coward · · Score: 1

    Has Microsoft gotten off the "we need more H1-Bs" bandwagon?
    I guess the shortage of highly skilled workers is over.
    Or, maybe only unskilled workers are being laid off.

    1. Re:How many H1-Bs are they trying to get? by guruevi · · Score: 2

      This year alone they have hired 2985 H1B's

      --
      Custom electronics and digital signage for your business: www.evcircuits.com
    2. Re:How many H1-Bs are they trying to get? by bjwest · · Score: 1

      H1-Bs with the same qualifications as someone being laid off should be the first to go. Hell, H1-Bs should be required to be let go and someone being laid off retrained if they're anywhere near qualified (no requiring secretaries to be retrained as developers, etc).

      --

      --- Keep the choice with the user..
    3. Re:How many H1-Bs are they trying to get? by callahan2211 · · Score: 2

      New law: If, in your district, there is a net gain in H1-B visa hires over net gain in non-H1-B visas hires. Then you cannot run for re-election. Problem solved. This would give the incentive to representatives to make sure Americans are being hired/retrained as needed. The status quo system we have now -- crony capitalism -- is geared toward looking after business and not the voter.

      --
      "There are no gods, no devils, no angels, no heaven or hell. There is only our natural world. Religion is but myth and
    4. Re:How many H1-Bs are they trying to get? by gmhowell · · Score: 1

      Those other nations are more than welcome to turn the tables or create their own rules.

      --
      Jesus was all right but his disciples were thick and ordinary. -John Lennon
  8. Hmmmmm by JWW · · Score: 4, Interesting

    When the announcement that cuts were coming I made a comment on /. about how everyone at Microsoft would be looking over their shoulder wondering whether their job would be cut.

    Howling responses insisted that no, the only jobs being cut were going to be in Finland and tied to Nokia.

    Now we find out that jobs are being cut in Washington, Silicon Valley, and Fargo. Hmmm, thats a long way from Finland.

    1. Re:Hmmmmm by gewalker · · Score: 1

      From the article.

      Thursday's cuts were spread over different countries and teams, the spokesman said. The last wave of cuts mostly affected the handset business of Nokia, which Microsoft bought earlier this year.

    2. Re:Hmmmmm by Anonymous Coward · · Score: 1

      Ego is anonymous coward lecturing others about how "zero people know you you are"

    3. Re:Hmmmmm by dbIII · · Score: 1

      When the announcement that cuts were coming I made a comment on /. about how everyone at Microsoft would be looking over their shoulder wondering whether their job would be cut.

      Isn't it MS that has the toxic culture of making sure that somebody in every team gets a poor review? That's already a reason to wonder about being cut.

    4. Re:Hmmmmm by Tablizer · · Score: 1

      Hmmm, thats a long way from Finland.

      Not according to iMaps

    5. Re:Hmmmmm by eriqk · · Score: 1

      Now we find out that jobs are being cut in [...] Fargo.

      Aw, geez.

  9. The more things change, the more they stay the sam by pkinetics · · Score: 3, Informative

    Layoffs in the USA, and hiring increases elsewhere.

    I remember a few years back reading how MS was proclaiming that they weren't increasing their H1B hirings. However, they were achieving the same results by doing it in Canada instead.

    More recent layoffs

    http://www.murthy.com/2014/05/...

  10. Multiple cuts by whereiswaldo · · Score: 1

    I worked at a company that made multiple layoff cuts over several months. It was really demoralizing. I hope for Microsoft and its employees' sake that this is the last layoff, else morale will plummet and people will start leaving of their own free will. They should have done just one larger cut and moved on.

    1. Re: Multiple cuts by justaguy516 · · Score: 1

      Machiavelli: If you have to do bad things, don't do them by dribs and drabs. Do them upfront in one fell swoop.

  11. 2.5 billion for Mojang and Minecraft by Anonymous Coward · · Score: 1

    Somebody is doing it wrong.

    1. Re:2.5 billion for Mojang and Minecraft by Tablizer · · Score: 1

      They are trying to block the layoffs from their mind

  12. Re:"MS. . .will get worse before this gets better" by DivineKnight · · Score: 1

    No no no no take it back, no! We've already paid for everything with Windows 8, they owe us a good version now.

  13. Re: "MS. . .will get worse before this gets better by DigiShaman · · Score: 1

    -Demotivation phrase-

    Redemption: When you're a day late and a dollar short.

    --
    Life is not for the lazy.
  14. Re:Solution: Financial Independence by DivineKnight · · Score: 5, Interesting

    Nada. We're in the middle of some of the worst right now. There's a piece up somewhere...can't remember if the link was on fark, gawker, or vice...but they gave a decent explanation of things are being run today (look for the Olive Garden piece) -> there is zero interest is keeping these companies alive, now it's about stripping them of their assets, and getting them to pay a hefty dividend. Feel me? Microsoft today is not the Microsoft of yesterday; Microsoft of yesterday made software; Microsoft of today is a corporate giant that could cut all of its employees, sell off then lease the buildings it currently occupies, sell off its name in certain areas (Microsoft ice cream, etc.), and so on. It's going to die only after it's been pimped out to every piece of gutter trash that the Street can find. And it's brain? Completely controlled by people with the worst intentions for it. It's like one of those zombified snails.

  15. What about the Turing Award winners? by tgeller · · Score: 4, Interesting

    Microsoft's Pear Street office across the street houses at least two ACM A.M. Turing Award winners: Leslie Lamport and Chuck Thacker (http://research.microsoft.com/en-us/news/features/lamport-031814.aspx). I wonder what the company will do with them, if anything....

    (I had the honor of interviewing Dr. Lamport when he won: See http://vimeo.com/95177539 . Nice guy!)

    --
    Tom Geller
  16. Re:Just one question. by Tablizer · · Score: 1

    A lot of people think the tiles are cool. They just didn't have to make everything else stupid.

  17. Re:Where's the bottom? by Tablizer · · Score: 1

    I think [MS products] will get worse...

    Uh, how is that a change?

  18. great advertising, Microsoft by c5402dc53929211e1efb · · Score: 1

    This really makes me want to give up my stable software development job and go work for you. No wonder why they say there are no qualified applicants....

  19. This was one of the most interesting parts of MSFT by ebusinessmedia1 · · Score: 1

    I've been there many times for forums and talks by some of Silicon Valley's smartest people. MSFT is on its way down; it's a behemoth. Balmer knew that and that's why he flew the coop. In fact, it's Balmer's crummy management of MSFT that led to this. Probably the most overrated CEO in the last 50 years.

  20. If you are going to drag someone in by dbIII · · Score: 1

    If you are going to drag someone in from halfway around the world you are normally expected to not fire them at a whim. The problem here is not the guest workers, the problem is a management mentality of firing at a whim and local conditions that do not protect the locals fired at a whim as much as guest workers fired at a whim. Firing guest workers gets noticed on many levels. Kicking a local out the door with no reason given is just American business as usual in some states.
    It's far too common to blame the people that are not being shafted than those doing the shafting.
    A different question is why are these people getting dragged in from halfway around the world, which gets hard to honestly discuss because indentured servitude and driving down wages rears it's ugly head while "that guy from country X is brilliant" muddies the waters.

    1. Re:If you are going to drag someone in by bjwest · · Score: 1

      This worker was "dragged" halfway around the world to fill a position where there was (supposedly) no qualified U.S worker available. Is it OK to import an H1-B worker and a few weeks later lay off a U.S worker from the same or similar position at another location within the same company?

      I vote no on that one. If there are lay offs to be done due to one division being downsized, then lay off the H1-B workers and relocate the U.S worker. This should be part of the H1-B regulations, but it never will be. Not as long as the corporations are the ones writing the regulations that are supposed to regulate them and protect us.

      --

      --- Keep the choice with the user..
    2. Re:If you are going to drag someone in by dbIII · · Score: 1

      Is it OK to import an H1-B worker and a few weeks later lay off a U.S worker from the same or similar position at another location within the same company?

      Of course not, but there's little or nothing to prevent it while it is less convenient to fire a guest worker in the US - plus guest workers are normally cheaper. If management have no reliable performance metrics they'll always go with cheaper. If management have the guest workers as contractors paid out of a different pool to the local workers it can look as if they are "free" in some metrics (eg. employee hours per thousand units sold or whatever, and contractor hours are not counted), so filling up an area with guest workers can be a fast track to promotion. Evil pricks didn't vanish with Enron.
      Some areas of business act like amoral medieval city states and it's only legal threats that keep them from going all the way. Your suggestion is good but what it needs is enough acceptance to be enforced by a group with sharp enough legal teeth, while fending off those who treat any discussion of employee conditions as "commie talk".

      Not as long as the corporations are the ones writing the regulations that are supposed to regulate them and protect us.

      With the current lobby system that's going to continue, although it's possible that a side effect of cracking down on hidden money transfers to fight terrorism may make it more difficult to bribe legislators.

  21. Re:This was one of the most interesting parts of M by MouseTheLuckyDog · · Score: 1

    Bill Gates didn't do that great a job He produced MSBasic, convinced IBM to hand him a monopoly for software that he bought. They managed to write a few pieces of software for the Mac with support from Apple which they then ported to Windows. From there on it was mainly anticompetitive practices, until the internet came along at which point Gates totally ignored it. Until; it became too popular to be dismissed, then to make up for the huge blunder, they had to engage in anticompetitive practices so onerous the government could not ignore it. Which then handcuffed MS so badly they could not compete in new markets.

    In the end under Gates they wrote more dog GUI OS's then they wrote good ones.

    So really it's just they got a monopoly and sat on it till momentum brought it down.

  22. They are not axing the Silicon Valley campus by Eric+Green · · Score: 2

    In fact, they are expanding it -- they are putting in a brand new data center on the site that was the former Counterpane Security, on LaAvenida across from their SV HQ, and they also have leased a huge building a couple of blocks away on Pear Street. There's also rumors that they're behind the demolishing of an entire block of tilt-ups between LaAvenida and Pear to be replaced by six-story office buildings. In any event Microsoft isn't leaving the Silicon Valley, just Microsoft Research is leaving -- all fifty employees. Every single one of them who can have a job tomorrow by walking down the street to the Googleplex. Not a single one of whom have ever created a product for Microsoft, because Microsoft doesn't create products anymore, they just re-invent other people's products (or their own previously-good products), badly.

    --
    Send mail here if you want to reach me.
  23. Was this even a surprise? by Anonymous Coward · · Score: 1

    Satya is an Indian. He'll probably cut costs by hiring more of his cheap kind from India.

  24. I can understand it by StripedCow · · Score: 1

    Look at Apple, they have no research department where actual scientists work (who publish).
    If you're unfamiliar with it, check out research.microsoft.com, and you'll see what I mean.

    --
    If Pandora's box is destined to be opened, *I* want to be the one to open it.
  25. Do Not Protect The Incompetent - Darwin FTW by luis_a_espinal · · Score: 2

    "The researchers will have little trouble finding new positions in Silicon Valley, where talent is in high demand."

    This is a complete falsehood that people need to stop parroting. Research work is VERY difficult to come by. Microsoft was one of the few places actually employing researchers.

    So what will they do now? There are absolutely no jobs left in academia, so forget that. They could in theory become programmers, but that field is overcrowded too as people on slashdot regularly point out.

    The fact is, if we want to maintain our jobs and standard of living in the USA, we're going to have to band together and force politicians to stop letting immigrants into the country to take our jobs. It really doesn't help matters when certain propagandists keep lying about how "plentiful" high-tech jobs are and how desperately we need more STEM graduates.

    If you replace this sentence:

    letting immigrants into the country to take our jobs

    with:

    letting incompetent immigrants into the country to take our jobs, but letting competent immigrants take the jobs of less competent people, citizens or otherwise, and we force our programmers to become more competent (because the quality of work we do here is pretty crappy)

    Then I'm on board. I'm not in favor of protectionism to protect the incompetent. And if we were more competent, we wouldn't be so worry about immigrants competing with us.

    To be honest, I would like to see our government throttle immigration of engineers into our country as a function of unemployment and other economic indicators (make rate of immigration in field X inversely proportional to unemployment in said field) coupled with actual examinations (classified by years of experience) of migrating professionals, to truly ensure we only get the best junior, mid and senior professionals that we can get. Also, we should do for all regions (LATAM, Eastern Europe, Africa, Middle East, etc) and not just for China and South Asia.

    That I would like to see.

    Open-ended migration, or closing immigration just to protect us from competition? No. I don't want to see that. Screw that. Bring the best, from as many parts of the world as possible and let the chips fall where they may. Let the competent rise regardless of origin. And let the incompetent adapt or sink, regardless of origin.

  26. Re:Axing Silicon Valley Campus??????? by __aaclcg7560 · · Score: 1

    I had a job interview four months ago with the TV group that was bought out by a different company and planned to move out of the Silicon Valley campus. It was ghost town. No people outside. The people inside were all hunkered down, waiting for the inevitable.

  27. Re:MSFT SVC had it coming by __aaclcg7560 · · Score: 1

    Everybody got an individual office and the usual perks and yet when you asked people about what they were working on, they could rarely produce an answer that was related to a meaningful product or a service.

    Acadmics, what did you expect?

  28. Re:This was one of the most interesting parts of M by slew · · Score: 1

    I'm not the biggest MSFT fan, but that's really giving MSFT the short stick, by saying they were done after MS-Basic and MS-Dos...

    For example, Bill managed to recruit David Cutler for WinNT which really allowed them to take over the server market and kept their desktop windows franchise alive for another 15 years (do you think it could have had WinXP legs by limping along with WinME as a code base?)... Of course you can't be at the top of the hill forever and I suspect the Nokia acquisition won't be as transformative as WinNT...

  29. Re:Where's the bottom? by Grishnakh · · Score: 1

    I think MS (and their products) will get worse before this gets better.

    Doesn't matter, people will still buy MS products no matter what. Businesses aren't going to wean themselves from MS's enterprise software anytime soon. This was a good decision: the research efforts were costing money which wasn't being made up in new sales.

    MS's best course of action is to cut out as much R&D as possible and other bottom-line costs, and then try to extract as much money from existing customers as possible by jacking up prices. Thanks to their monopoly position in several markets, this shouldn't be hard.

  30. Re:Cut cut cut by Grishnakh · · Score: 1

    It's actually a good strategy for MS, I think, and I believe Ballmer screwed up by not following this strategy.

    For other companies, it only works in the short term because their competitors win in the long term because without good employees, the company can't develop new products. However, for MS, this just isn't a concern. They're a monopoly in many markets, especially in business software; companies aren't going to suddenly stop buying Windows, Exchange, Office/Outlook, etc. MS can milk their existing customers for a couple of decades I think, and could easily jack up prices greatly.