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Microsoft Will Close Its Skype Office in London, Nearly 400 Jobs To Be Impacted (techcrunch.com)

Microsoft is closing Skype's office in the UK, according to the Financial Times. The move is likely to affect jobs of nearly 400 people at the London HQ. Commenting on the report, Microsoft said it will "unify some engineering positions," but that it "will be entering into a consultation process to help those affected by the redundancies." From a TechCrunch report: The London office is a key part of Skype's history, since it was the primary engineering site and headquarters of the company before Microsoft acquired it, and it also survived Skype's strange interlude under the ownership of eBay before it was acquired by the big M. While the move is no doubt a blow to London's tech scene, some former insiders told the FT that it's also not a surprise to see it go, largely because a steady stream of executive departures over the last few years have foretold a shift in the locus of power at the company. Post-acquisition, Microsoft has also done a lot of product work on Skype, with plenty of integration with Office 365 and a number of feature introductions that bring it closer in line with Slack.

64 comments

  1. Consultation process by Simon+Rowe · · Score: 4, Informative

    it "will be entering into a consultation process to help those affected by the redundancies."

    That's because they have to by law. https://www.gov.uk/redundant-your-rights/consultation

  2. Makes sense by Anonymous Coward · · Score: 0

    It makes a lot of sense for Microsoft to pull out of Europe, including the UK. The taxes are ridiculously high, to pay for absurd and unnecessary social programs, so I don't blame companies that don't want to pay them. Compared to Europe, the US is basically an offshore tax haven.

    1. Re:Makes sense by Anonymous Coward · · Score: 2, Funny

      Compared to Europe, the US is basically an offshore tax haven.

      In fact this is how the US started: by people not wanting to pay taxes. See boston tea party.

    2. Re:Makes sense by r1348 · · Score: 1

      Enjoy your food stamps.

    3. Re:Makes sense by Anonymous Coward · · Score: 1

      Wrong. The US didn't want to pay taxes without representation. Their tax dollars were going overseas and staying there.

    4. Re:Makes sense by Jzanu · · Score: 0

      Now Brexit means Britain lost representation in the European Parliament, but will inevitably face the exact same trade rules, or face being left out in the cold. I can't understand the apathy that let the biased memory of old pensioners decide the fate of workers like this.

    5. Re: Makes sense by Anonymous Coward · · Score: 1

      The old pensioners have known the EU for what it is and even helped built it. As for today's "workers"... They never had a snowball's chance in the Sun anyway.

    6. Re:Makes sense by Anonymous Coward · · Score: 0

      bigot (bt)
      n
      a person who is intolerant of any ideas other than his or her own, esp on religion, politics, or race

    7. Re:Makes sense by Plammox · · Score: 1

      unnecessary social programs

      Others would use the term "a civilised society with consideration for the not so well-off".

    8. Re:Makes sense by Anonymous Coward · · Score: 0

      retard

    9. Re:Makes sense by Anonymous Coward · · Score: 0

      Colonial citizens were not against taxation. See any history book ever written.

    10. Re: Makes sense by Malc · · Score: 1

      Actually corporate and payroll taxes in the UK are lower than the US, and probably the salaries are too. If the new government doesn't change plans then corp tax in the UK is heading for 15%, which is a lot less than the US' 35% + local rate

    11. Re:Makes sense by nnet · · Score: 1

      and crime will be committed by trailer park white trash meth heads, and meth head kids of middle class and the one percenters. bravo.

    12. Re: Makes sense by Anonymous Coward · · Score: 0

      God, Americans are so stupid.

      The Boston Tea Party was an act of destruction by John Hancock's thugs. John Hancock was a tea smuggler who brought in (inferior quality) tea that had not been taxed in Britain before shipped to the colonies.

      The crown REDUCED the tax on tea so that the higher quality tea from the taxed East India Tea Company was now the same price as the inferior, smuggled tea from John Hancock.

      It had nothing to do with the public enraged about representation or taxes. It was John Hancock and Samual Adams, as mob leaders, trying to push a competitor out of the market.

    13. Re:Makes sense by Anonymous Coward · · Score: 0

      Yeah. I'm a UK top-band tax payer (contractor in City), so I pay a LOT for this stuff. But I look at the US social programs and wince. How can anyone hate their citizens SO MUCH? Americans go on about loving their country - a lot - but when it comes to actually caring about their people ... it's actually disparaged.

      Guess that's why nobody minds if so many get shot. Remember - guns don't kill people ...Americans with guns kill Americans.

    14. Re: Makes sense by Anonymous Coward · · Score: 0

      Also kind of wrong, but corporate printed US history books deliberately distort this because the truth isn't compatible with the libertarian/conservative party line.

      The truth is that the colonists paid somewhat lower taxes than their countrymen at home. The colonists also had representation in Parliment, but not really enough given the size, population, and economic impact. That part is quite true.

      That lack of representation caused some problems. Parliment forbade the manufacture of certain finished goods in the colonies, effectively requiring tools and high end items to be imported from England. They knew what idiot politicians and libertarians today do not--that if you don't manufacture things your economy is toast. The first Congress enacted a strong domestic oriented trade policy with strong tariffs on certai goods that persisted until Reagan got elected. Those people knew better because they'd had the opposite done to them. The decline in wealth of US citizens can be traced to that point in time btw. We now ought to know better because the results of corporate free trade are pretty blatantly obvious.

      Btw, when George Washington found out he'd been elected President one of the first things he did was send his measurements to New York to the only fine clothing maker in the former colonies. He wanted to be sworn in wearing a domestic suit. He'd be sickened by NAFTA, TPP, and all the other nonsense ruining our country.

      Speaking of corporate giveaways, our story of the Boston Tea Party is pretty inaccurate and again corporate serving. What really happened was that Parliment gave a tax break on tea to the British East India Company and only to that company. It was their closest thing to Wal Mart, and by the way that company still exists and so do the records of this. That gave this multinational corporation a competitive edge and threatened lots of Colonial businesses by undercutting prices. Sound familiar?

      In short, the Boston Tea Party was about exactly the kind of corporate welfare that governments hand out all over the place today, except this one touched off a revolution because people then understood what it meant.

    15. Re: Makes sense by Anonymous Coward · · Score: 0

      Funny thing is you pay a lot more tax now then back in the 1770s. You might have heard of the military and their 400b plane. theres hardly any diff in Europe vs USA taxes....

      Next time u calculate taxes you might want to include extras that Americans need to pay like health insurance and so on. In the end Americans pay more to live and end up with less.

  3. Typical Microsoft acquisition result by HBI · · Score: 2

    Can anyone think of a single MS purchase where the employees did well out of the deal, leaving out the original owner?

    "Microsoft is buying us" should convince anyone employed by the firm to update their resume.

    --
    HBI's Law: Frequency of calling others Nazis is directly correlated with the likelihood of the accuser being Communist.
    1. Re:Typical Microsoft acquisition result by El+Cubano · · Score: 5, Interesting

      Can anyone think of a single MS purchase where the employees did well out of the deal, leaving out the original owner?

      Not just MS. I know people who were at small or very small firms that were either directly or indirectly acquired by very large firms (e.g., IBM, HP, General Dynamics, etc.). Not a single one of those friends or acquaintances remained with new large parent company past a year or two. In every instance they mentioned how at first things seemed fine, be eventually the parent wanted to fully assimilate the new acquisition, which meant a loss of the old company culture, structure, etc. Invariably, there were pay cuts, removal of perks, reorganizations, office closures, relocations, and all manner of other changes that would definitely challenge the morale of those who liked the environment of the smaller company.

      As far as I can tell this seems to be a potential problem when any large and established company acquires a significantly smaller and/or less established company.

    2. Re:Typical Microsoft acquisition result by Anonymous Coward · · Score: 0

      I interviewed with Skype's Mac team the week before the MS buyout was announced. When we first talked, they were an excited, motivated team, who wanted to do the best work they could. The following week (apparently after meeting Ballmer), their morale had gone to shit. I hope those guys all found better jobs elsewhere.

    3. Re:Typical Microsoft acquisition result by idji · · Score: 1

      when they acquired Excel.

    4. Re:Typical Microsoft acquisition result by Anonymous Coward · · Score: 0

      Excel is written from scratch by Microsoft. They didn't acquire it.

    5. Re:Typical Microsoft acquisition result by Anonymous Coward · · Score: 2, Insightful

      Big companies don't really buy small companies -- they buy their IP.

    6. Re:Typical Microsoft acquisition result by OneHundredAndTen · · Score: 1

      Indeed. If the company that you work for is a small one, and it is acquired by a large one, you will have reason to celebrate only if you have a significant stake in the small company. Otherwise, you are pretty much screwed. As somebody who is likely to be in that situation in a couple of years time, chances are that, if and when that happens, I will be laid off in short order, but with a nice payoff that might allow me to retire with dignity, if not with opulence.

    7. Re:Typical Microsoft acquisition result by gtall · · Score: 1

      Yeah, well, Ballmer probably did his Monkey Dance for them...that's knock anyone off their feed.

    8. Re:Typical Microsoft acquisition result by Anonymous Coward · · Score: 0

      whether or not a microsoft (or facebook or google or yahoo or whatever) acquisition is good for a smaller company's employees depends entirely upon whether those employees have stock in said company. if they don't, they're fucked. if they do, they can usually cash in.

    9. Re:Typical Microsoft acquisition result by JustAnotherOldGuy · · Score: 1

      And Satan Nutella or whatever the fuck his name is gets another raise. Too bad about those people losing their jobs and all, but hey, they were just lowly employees anyway. They can sleep under one of the dumpsters behind the Microsoft office.

      --
      Just cruising through this digital world at 33 1/3 rpm...
    10. Re:Typical Microsoft acquisition result by Anonymous Coward · · Score: 0

      Minecraft?

    11. Re:Typical Microsoft acquisition result by HBI · · Score: 1

      I don't think we've given that acquisition enough time to know for sure.

      --
      HBI's Law: Frequency of calling others Nazis is directly correlated with the likelihood of the accuser being Communist.
    12. Re:Typical Microsoft acquisition result by Anonymous Coward · · Score: 0

      I think the virtualpc guys did OK. I also think the sysinternals guys did alright.

    13. Re:Typical Microsoft acquisition result by Zontar+The+Mindless · · Score: 1

      Heh. And I just turned down an offer from Skype here in Stockholm...

      --
      Il n'y a pas de Planet B.
  4. Thank you, Brexit, Falettinme Be Mice Elf Agin by Anonymous Coward · · Score: 0

    Not that there's a riot going on, but it was a family affair.

  5. Re:slashdot by Anonymous Coward · · Score: 0

    stale pasta is stale

  6. To bad. by Anonymous Coward · · Score: 0

    Skype is one of those few programs "from" ms that actually work rather good. Yes I have Skype4bussines at work and it's good for screensharing and voice. So we use it for meetings.
    But for day to day communication using chat it's useless, no only does converstions got stored in some meeting logic so you are unable to see what you last talked to a contact about. And you can never be sure if you get all messages as they are only sent to one of your devices so if you expect a message from work during the offhours, don't trust S4B for it. The message might end up on you computer at work and not your mobile and you be none the wiser.

    1. Re:To bad. by Anonymous Coward · · Score: 0

      and you be none the wiser

      We are talking about people who voluntarily use a product that comes from MS. There is no need to be redundant by belaboring the point.

  7. Microsoft by Dunbal · · Score: 1

    The firing company. Last one out turn off the light. This means you, Satya.

    --
    Seven puppies were harmed during the making of this post.
  8. Re:More Brexit Fallout by Anonymous Coward · · Score: 0

    Wow the skype trade must really be bad!

  9. Re:More Brexit Fallout by Jzanu · · Score: 0

    Trade rules still apply to e-commerce and banking transactions, and both are complicated by the UK exit disaster.

  10. A better question is by melted · · Score: 1, Insightful

    How the fuck do you run your organization so badly, that you get to the point where you have 400 "redundant" people in the first place? And how the fuck something like Skype is using all those people? It's a fucking VOIP app, it's not rocket science. I'd expect the _total_ size of the org to be smaller than that.

    1. Re:A better question is by tomhath · · Score: 2

      Well, it's an app with something over 300 million active users, so I expect there's more to it than tossing a VoIP app out on github. But obviously you know more about how the company should be run than the company itself.

      As far as the 400 "redundant" people, than just means they're closing the office and moving the work elsewhere, not that 400 people aren't needed somewhere.

    2. Re: A better question is by Malc · · Score: 0

      Somebody's been working very hard at making it a shittier programme than it was before Microsoft bought it. Who do you think created all those bugs in it?

    3. Re:A better question is by sandbagger · · Score: 2

      They're doing business in a few dozen countries. That means dealing with communications regulatory and tax collection agencies in all those places. With hundreds of millions of users, keeping all of those plates spinning does take a certain amount of work.

      --
      ---- The above post was generated by the Turing Institute. Maybe.
    4. Re:A better question is by gtall · · Score: 1

      In that case, we should be filthy in VOIP companies and apps. Oh, we aren't. I guess it is time for you to start one since you seem to have a clear understanding of what's involved.

    5. Re:A better question is by HornWumpus · · Score: 1

      Look around.

      We are shitty with VOIP companies, none of them interoperate. Skype was among the worst, but somehow got 'critical mass'. It might be losing it.

      --
      John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
    6. Re:A better question is by Anonymous Coward · · Score: 0

      You acquire a company for the products and decide that their original office is not cost-effective to keep, so you shut it down.

    7. Re: A better question is by Anonymous Coward · · Score: 0

      Skype was never worth billions... it's another of those insane purchases that were never worth anything like the purcHSE COST. Eg Nokia. Once the hysteria settles they need to change investments for said purchase to match what it's really worth...

  11. Small companies don't have the resources by rsilvergun · · Score: 1

    to outsource to India or obtain cheap labor through work visas. That's why you see this pattern repeated so much. It's also why small business is the only real source of (net) job growth in most modern economies. You just can't compete with the likes of India, China and the Philippians. It's useless to even try...

    --
    Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
    1. Re: Small companies don't have the resources by Anonymous Coward · · Score: 0

      Small companies know better than to outsource to India if they want to have a product that actually works.

  12. Be it is more NSA related given MS backdoored it by Anonymous Coward · · Score: 0

    Remember that under Microsoft's control they centralized it to give the NSA the ability to more easily monitor all Skype calls. All the advancements that the original Skype had in its decentralized architecture were removed and to Microsoft these technologies and advancements are not of value. Microsoft is clearly being paid off.

  13. Which makes for redundancy by Actually,+I+do+RTFA · · Score: 1

    MS already has (probably better placed) people to deal with regulatory/tax collection agencies than Skype had. Or they would have moved those people off Skype to a more core function.

    --
    Your ad here. Ask me how!
  14. Gotta keep the ball rolling somehow... by Z80a · · Score: 1

    It's a tradition to make this software worse and worse and worse on every version, so it's only natural that they have to cripple the development team.

  15. Re:slashdot by Jzanu · · Score: 1

    I've used this site longer than 99.9% of the idiots on here, and it has changed immensely under the new management - but that change started even before Rob Malda stepped out. Slashdot started to die around 2004 roughly when the libertarian crowd concentrated and drowned out all of the comprehensive analysis with “cite” requests designed to stop discussion, and that decline was given nitro fuel by the influx of uneducated kids who are misogynists due to psychological problems and total lack of contact with women. Since these groups are dominant ~and~ the stories themselves are barely more than clickbait, it is absolutely fair to say Slashdot is not only sick but it is dead and buried in the graveyard. The point of Slashdot was always the social impact of technology even when reporting on the “new” Linux Kernel 2.4. the better part was mixed installation tricks and experience-driven talk about how it might replace windows someday. That character is now gone and replaced with a cross of Gizmodo and the tabloid Gawker itself. RIP Slashdot, you've been dead for years but all original users still miss what you were!

  16. Editorial standards by Panoptes · · Score: 1

    'jobs to be impacted'

    Slashdot's use of English gets worse by the day. Are there no proofreaders available?

    1. Re:Editorial standards by Anonymous Coward · · Score: 0

      Sorry, Slashdot's proofreaders were part of the London office.

  17. Re: slashdot by Anonymous Coward · · Score: 0

    Feelz trump facts.

  18. Re: slashdot by Anonymous Coward · · Score: 0

    You mean like specific years and topics dating from 2000? The demographic can be measured directly by text topic and sentiment analysis if you have time to kill.

  19. London was PMs and auch by Anonymous Coward · · Score: 0

    London was not the primary engineering location. Tallinn was. Before MS acqusition, anyway.

  20. OT Re:slashdot by gilgongo · · Score: 1

    "all original users still miss what you were!"

    Having one ID digit less than you, I have added the OT to the subject simply out of netiquette nostalgia.

    --
    "And the meaning of words; when they cease to function; when will it start worrying you?"
  21. Re: Be it is more NSA related given MS backdoored by Anonymous Coward · · Score: 0

    Nice to finally meet someone who understands the reason for the acquisition. That being said, Skype is the AOL of VOIP now. Grandma's use Skype now. The rest use WeChat.