Microsoft to slash 5,000 jobs, misses on second-quarter profit

[RedEarth]

Source: AP

REDMOND, Wash. — Microsoft Corp. said today it is cutting 5,000 jobs over the next 18 months, a sign of how badly even the biggest and richest companies are being stung by the recession.

The layoffs appear to be a first for Microsoft, which was founded in 1975, aside from relatively limited staff cuts the software company made after acquiring companies.

The company announced the cuts as it reported an 11 percent drop in second-quarter profit, which fell short of Wall Street's expectations. Microsoft shares plunged 7 percent in pre-market trading.

Microsoft said it was being hurt by deteriorating global economic conditions and lower revenue from software for PCs. The holiday quarter of 2008 was the worst the PC market had seen in several years.



Read more: http://www.mercurynews.com/breakingnews/ci_11526471

[WeDidIt]

1. This will have a ripple effect across the software sector

not to mention computer hardware.

Not good.

[onehandle]

2. Not all the biggest and richest companies...

Apple trounces Wall Street estimates

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3700881

[high density]

3. Microsoft (Gates) is one of the biggest whores for H-1B visas

Time to end that visa program now.

[schrodinger_I]

4. So is FedEx

They love H1B Visas.

[OhioChick]

5. Couldn't agree with you more.

I'm curious to hear "where" these job cuts will come from...

[Azlady]

8. So agree!

ALL worker visa programs need to be stopped immediately. I love the new argument for bringing H1-B's to the U.S. They can put money into our economy, buy homes, etc etc.... WHAT?????? If we can't... how the HELL do they think they are... especially with staggering billions of U.S. DOLLARS earned by Visa Workers are sent back to their home country... give me a break..,..

[OhioChick]

6. No cuts in India...

Microsoft to axe 5,000, no job cuts in India

NEW YORK: Starting with 1,400 job cuts, software giant Microsoft will slash 5,000 jobs over the next 18 months.

"Microsoft will eliminate up to 5,000 jobs in R&D, HR, marketing, sales, finance, legal, and IT over the next 18 months, including 1,400 jobs today," the company said in a statement.

The layoff, however, would not be impacting the Indian operations. "It's not going to impact us. No job cuts in India," a Microsoft India spokesperson said in New Delhi.


http://timesofindia.indiatimes.com/Microsoft_to_axe_5000_but_no_job_cuts_in_India/articleshow/4018194.cms

[ChromeFoundry]

15. I'm done giving M$ any more money

Linux & OpenOffice will be my next Operating Systems when I'm done with XP (never went to Vista, and don't plan to go to Win7)

Any new application development for Windows will now be done on Mono. I will now start pushing all my customers to go with OpenSource solutions over Microsoft. If Microsoft chooses to fuck over my colleagues... We'll just have to fuck them right back.

[Cronopio]

17. More evidence of Ballmer ramping up the offshoring.

http://www.computerworld.com/action/article.do?command=viewArticleBasic&articleId=9126598

January 22, 2009 (Computerworld) While Microsoft Corp. plans to eventually eliminate up to 5,000 jobs, including 1,400 cuts to be made today, it is doing its best to minimize the impact on employees and its ongoing strategic efforts, CEO Steve Ballmer said.

"Let me make sure the math is clear: We are eliminating 5,000 jobs, but we are also adding a few thousand jobs," Ballmer said during a conference call today with Wall Street analysts.

In total, Microsoft will reduce its head count by 2,000 to 3,000 in the next 18 months. Microsoft has 96,000 employees worldwide, reported The Seattle Times today, up from 91,000 at the end of the last quarter.

Most of Microsoft's immediate layoffs will be in the Seattle area, a spokeswoman told the Times.

----

Also adding a "few thousand jobs"? The meaning behind that vagueness is obvious.

[OhioChick]

18. Seattle 's going to be hit the hardest, then.

The rest of the BS makes me sick. Bottom line.....cheap labor.

[Cronopio]

19. What's especially disgusting about it is ...

... the line they're peddling about "doing best to minimize the impact on employees".

Translation: *some* employees. The Microsoft gravy train has left the station for everyone else.

[FatDave]

7. But Vista's so bright and shiny!

[raccoon]

9. I wonder if it's occurred to Bill Gates to take a pay cut? nt

[Haole Girl]

10. Ouch

:-(

[jzodda]

11. Keep those H1B's coming in though!

Since they can pay them much less. Those H1B's should be the first ones to go but they won't be. We've got big problems these days as our workforce loses more and more protections. Outsourcing and H1B and other programs are great for upper management and shareholders but for our workers as a whole? What a lousy deal.

[OhioChick]

13. Yeah, give Gates a year and he'll be in front of Congress pimping for more. n/t

[Amonester]

12. I guess they just can't sell any...

hasta la vista or (always changing until nobody knows how to use it anymore) way overpriced office suite (i switched to FREE OpenOffice.org since the last office release)

how about making products that ordinary people want to use (an can afford), bill? :shrug:

[OhioChick]

14. Anonymous postings give clues to where Microsoft's cutting jobs

"Anonymous postings give clues to where Microsoft's cutting jobs"

Entertainment & Devices unit said to be hit hard

January 22, 2009 (Computerworld) Microsoft Corp. is laying off employees in the divisions that make its Zune music player, Microsoft Office software and Live Search site, but not in the group preparing its Windows 7 operating system, according to anonymous postings today by purported Microsoft employees.

At the popular Mini-Microsoft blog, alleged former, current and just-laid-off employees of the software maker shared information about the layoffs, 1,400 of which are to be announced by the end of today.

"Well I got the The Meeting this morning when I came in," wrote one anonymous poster. "I've been a dev here for 6 years and I'm in the mid-70% category and my managers and HR relation assured me that this was not related to my reviews.

http://www.computerworld.com/action/article.do?command=viewArticleBasic&articleId=9126623&intsrc=hm_list

[dysfunctional press]

16. is that the whole vista team?

:shrug: