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Microsoft could cut up to 10 percent of its workforce according to reports

Microsoft CEO Satya Nadella last week laid out his grand vision for the future of the tech company. Nadella told employees in a company email that we are in a “mobile-first and cloud-first world” and that Microsoft would strive to achieve greater efficiencies in its workforce and product development to make sure that the customer is put first.
 
At the time, Nadella told employees:
 
Our priorities will be adjusted. New skills will be built. New ideas will be heard. New hires will be made. Processes will be simplified. And if you want to thrive at Microsoft and make a world impact, you and your team must add numerous more changes to this list that you will be enthusiastic about driving…
 
We will increase the fluidity of information and ideas by taking actions to flatten the organization and develop leaner business processes. Culture change means we will do things differently. Often people think that means everyone other than them. In reality, it means all of us taking a new approach and working together to make Microsoft better.
 

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.
 
Gigaom adds a bit more clarity, suggesting that Microsoft could cut up to 10 percent of its workforce.
 
Personnel targeted for termination include those working in areas where Microsoft and Nokia overlap and members of the Xbox global marketing team.

Sources: Bloomberg, Gigaom



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Here we go again...
By MrBlastman on 7/15/2014 11:43:32 AM , Rating: 2
This is just an observation and nothing more. Do not infer anything else from it.

One common thing I have observed, time and time again is when an Indian heads up a company as CEO, they typically focus on cost cutting either through laying off employees or cutting out anything they can internally in a company.

I don't understand it. Is it cultural?




RE: Here we go again...
By peterrushkin on 7/15/14, Rating: 0
RE: Here we go again...
By atechfan on 7/15/14, Rating: 0
RE: Here we go again...
By peterrushkin on 7/15/2014 1:06:35 PM , Rating: 1
You are hardly in good company there, now are you?

Oh boo-hoo. Someone on a crappy website is calling me racist.... What a joke!


RE: Here we go again...
By atechfan on 7/15/2014 1:40:18 PM , Rating: 2
It seems to have upset you enough to have you begging others to downvote me.


RE: Here we go again...
By amanojaku on 7/15/2014 1:52:22 PM , Rating: 2
If Reclaimer and retrospooty are calling you racist, that's a very bad sign. They don't throw that word around lightly as they're quick to dismiss any claims of racism.


RE: Here we go again...
By Samus on 7/15/2014 4:46:13 PM , Rating: 5
I might get ridiculed for such an analogy, but I think if Nadella received the level of press, say, Obama gets, people would realize he is about as Indian as Obama is Black. This isn't to infer they are white, but that their culture and background doesn't have an overbearing effect on their job. Satya Nadella is just as moderate in business as Obama is in government.

The layoffs were inevitable. Microsoft has too much crossover, and at a time they are prioritizing other divisions and trying to increase efficiency/decrease crossover (especially because of the Nokia merger) what are they left to do?

They're not a Union player; they are not required to keep dead weight like, say, the auto industry is. And anybody who is cut from Microsoft probably has a resume to guarantee them another gig in short time, short enough for a generous severance package to coast on.


RE: Here we go again...
By Argon18 on 7/15/14, Rating: -1
RE: Here we go again...
By inighthawki on 7/16/2014 12:53:57 PM , Rating: 2
You completely missed the point of that statement. It wasn't racist at all.


RE: Here we go again...
By atechfan on 7/15/2014 5:18:33 PM , Rating: 3
You had me right up to the part where you called Obama moderate.


RE: Here we go again...
By Samus on 7/15/2014 9:32:13 PM , Rating: 2
So...you think he's a democrat? And I guess you thought Arnold Schwarzenegger was Republican?

The ticket means nothing. That's the problem with American politics.

The only thing not conservative about Barack Obama is his credit card addiction. Everything he has done, from healthcare to military overhaul has been something a libertarian would have done. Even Mitt Romney would have kept his healthcare platform. He even said as much.


RE: Here we go again...
By atechfan on 7/15/2014 9:54:59 PM , Rating: 3
A Libertarian would not have had the government get involved in healthcare at all. A Libertarian would not be expanding government agencies the way he has, nor would they have forced a company into basically union ownership like was done with GM. I don't think that word means what you think it means.


RE: Here we go again...
By Reclaimer77 on 7/15/2014 2:19:12 PM , Rating: 2
So crappy, you're here everyday.

I mean honestly, can we just elevate this a bit? Just a bit?

I can forgive you being bigoted against people from India. Whatever, we all have our little prejudices.

However every single time you post lately, you just act like a huge tool. I have a bigger problem with that than the racism.


RE: Here we go again...
By name99 on 7/15/2014 2:41:09 PM , Rating: 2
Oh my, you really understand empirical science, don't you?

Let's see:
HP --- Mark Hurd
Daimler -- Dieter Zetsche
BoA --- Brian Moynihan
Boeing --- Alan Mulally
IBM --- Louis Gerstner
etc etc
Not seeing many Indian names in this list...


RE: Here we go again...
By Bubbacub on 7/15/2014 5:48:20 PM , Rating: 2
Don't know about blastman, but your posting history makes it clear that you most certainly are a racist wanker.


RE: Here we go again...
By Jeffk464 on 7/17/2014 12:50:17 PM , Rating: 2
Only masturbates to white porn?


RE: Here we go again...
By Jeffk464 on 7/17/2014 12:47:03 PM , Rating: 2
WTF, this is the hallmark of corporate america.


"make sure that the customer is put first."
By kattanna on 7/15/14, Rating: 0
RE: "make sure that the customer is put first."
By TheSlamma on 7/15/2014 10:57:57 AM , Rating: 5
He's hardly been in the position and Windows 9 is bringing back the Start menu, they are listening. Tell me what company you think is listening? if you say Google then I Pre-LOL at that.


By Milliamp on 7/15/2014 12:26:05 PM , Rating: 1
The windows 8 beta testers told them exactly what was wrong with it but they had to learn the hard way anyway. They knew Win 8 would be a lackluster release but they don't care because they tend to get every other release (mostly) right.

It's really not about customer feedback or they would release a sand-boxed version of a browser that people could use that doesn't leave people susceptible to ads that say "Warning: your drivers are out of date, click next to update them"

This is a big part of why Chromebook has been successful.



RE: "make sure that the customer is put first."
By stimudent on 7/15/2014 11:22:39 AM , Rating: 2
People I know are so NOT interested in Windows phone. It's hard to say why exactly. I think it may be the first to the party theory. Meaning, Windows and Intel were the first to the PC market in a big way when the consumers were ready for PCs. The same happened to Apple when the company came out with the iPhone and Samsung was right behind the to catch the wave right when the consumer was ready for a smart phone.
Once the first and capable players names and logos are burned into the minds of the public, it is either very difficult to unseat them or impossible.


By Milliamp on 7/15/2014 12:35:28 PM , Rating: 2
I think it is for different reasons though. With Windows they had a grip on the industry and there was not a lot of actually good options. (ie, Linux on the PC desktop didn't really count)

With mobile I don't think people are without options as much as they are just content with the platforms they are using. If I move off of Android it will be to develop software for a different platform because I have never cared much for Java.


By peterrushkin on 7/15/2014 12:39:55 PM , Rating: 2
It's the mass effect.

You don't see it in other people's hands because of the low market share.

Instead you see people lining up for the Apples and Samsungs. Do you honestly see people getting excited about a Nokia? phone? Really? No, neither do I.

So for joe six pack or whatever he is called nowadays. Probably hasn't even heard of Windows Phone. Instead he knows about Apple or Samsung because his friend has one. His friend has a nice shiny new phone and well he wants one too.

If you can't get around that, well keep living it up fanboy!


By Jeffk464 on 7/17/2014 12:53:27 PM , Rating: 2
quote:
It's hard to say why exactly.


Its hard to bump off the market standard. Microsoft has benefited greatly from this fact with their desktop OS so its hard to sympathize with them now that its hurting them in mobile.


Massive layoffs, followed by...
By jnemesh on 7/15/2014 2:00:48 PM , Rating: 5
RECORD numbers of H1B Visa requests....just watch.




By Jeffk464 on 7/17/2014 1:17:50 PM , Rating: 2
H1B visas are the best kind of immigration.


Mega Corp Downsides
By Ammohunt on 7/15/2014 2:44:12 PM , Rating: 5
One of the downsides to working for a Mega Corp and the primary reason I left Oracle you are a statistic on a balance sheet more than a valued employee.




By letmepicyou on 7/16/2014 1:25:48 PM , Rating: 2
These CEO's and 6 figure income corporate business types need to wake up to the fact they were LIED to.

Historically speaking, there was a single driving mantra in business that led America from the civil war to the 1980's, and that mantra was EXPAND OR DIE.

It made America was it is today. Or at least what it was yesterday. For in the last few decades the people that write the college textbooks have changed the thinking from "Expand or Die", which works, to "Slim and eliminate", which is a zero sum outcome equation.

Business students would do well to take some quantum math or fractal calculus. You would realize that when you cut costs (a euphamism for job elimination) and use that as a core value of your business, it has an end outcome of zero. Every time you cut costs, you get closer to zero.

Every job you eliminate is a possible buyer of your own business' products and services, or a possible buyer of the products and services of other companies which buy your products and services. You can't cut costs by eliminating jobs because you can't treat the people that make your business work as a cancer that needs to be removed.

You need to ADD people and ADD jobs or YOU AREN'T GROWING YOUR BUSINESS and thus YOU ARE FAILING. Job elimination is a direct SIGN of a failing business.

Time for the CEO's and their ilk to wake up and realize that maybe the people that printed your textbooks have an agenda OTHER than growing America. Who nowadays vets their textbook authors? I bet nobody. Spending tens of thousands on a business "education" creates a hubris that says "I spent all this money to read these textbooks, they MUST be right...or I wasted my money!"

Well, you DID waste your money. You paid tens of thousands to read books you could have read for free. To be taught an agenda that is ripping America apart.




"make sure the customer is put first"
By moonbeam123 on 7/15/14, Rating: -1
RE: "make sure the customer is put first"
By Shadowself on 7/15/2014 12:59:29 PM , Rating: 3
quote:
Get a Mac!!!
Ah yes...

That's why Apple let the Mac Pro languish with no *real* upgrades for so many years.

That's why the newest Mac Pro is not internally upgradeable after purchase (other than RAM).

That's why Apple did Final Cut X (which for the first year or so professionals universally hated ).

That's why Apple lobotomized iMovie and QuickTime.

That's why Apple so steadfastly stuck to Objective-C for so many years.

That's why Apple is killing off Aperture and iPhoto.

And the list goes on and on and on and on.

Yup, that's all because Apple makes sure customers come first.


RE: "make sure the customer is put first"
By Dug on 7/15/2014 4:16:01 PM , Rating: 1
Actually everything you listed is why Apple is doing what it's doing.

Mac Pro was .5% of sales.
.5% of that upgraded ram or hard drive which you still can in mac pro
Final Cut very few liked, but they listened and in the end works after listening to customers.
objective-c worked
iphoto will take over aperature. Everyone uses photoshop or some other alternative.

So they listen to the majority, not the minority. If they did that then they would be out of business.


By Shadowself on 7/15/2014 7:44:05 PM , Rating: 2
quote:
Mac Pro was .5% of sales.
However, the gross margins on the Mac Pro far outstrip those of the low end iMac, yet they came out with such an item just recently. For Apple it is as much about gross margins as unit sales. If it were all about unit sales, Apple's pricing model would be radically different than it is.

quote:
.5% of that upgraded ram or hard drive which you still can in mac pro
You can buy third party RAM after the fact for the current Mac Pro. I know of no one who sells the specific form factor, PCIe interfaced SSD ("hard drive" as you call it) for the current Mac Pro other than Apple, and Apple does not sell after market upgrades. And, the high probability of never being able to upgrade the graphics cards is a non starter for a lot of people (again, Apple Mac Pro unique form factors and implementations).

quote:
Final Cut very few liked
Actually, many, many professionals in the industry liked and used Final Cut. They just hated Final Cut X. Yes, Apple eventually added back in many of the features they removed, but it still -- after all this time -- has a way to go to be as useful as it once was.

quote:
iphoto will take over aperature.
No. Apple has officially stated that it is killing BOTH iPhoto and Aperture. Apple claims it will come out with a new application called "Photos" that will do the job of both. Apple's track record of doing one piece of software that covers both the low and mid/prosumer end is abysmal.


LOL ok.
By Reclaimer77 on 7/15/14, Rating: -1
RE: LOL ok.
By themaster08 on 7/15/2014 11:31:23 AM , Rating: 5
They've also just taken on over 25,000 additional employees with the acquisition of Nokia.

Streamlining their operations isn't necessarily a bad thing in this case.


RE: LOL ok.
By amanojaku on 7/15/2014 11:36:42 AM , Rating: 2
You can't pay rent and salaries with stock prices. This is actually a smart move. Investors are worried that MS is slowly, but surely, fading. MS even admits this is because of mobile. It thought mobile would fail, or at least gain adoption slowly, and let Apple and Google get everything.

It's a real shame, because MS was doing mobile years before either, it simply was never serious about it. I know because of my time at VMware and Citrix, attempting to sell MS on the idea of supporting people remoting into their virtual desktops from phones and tablets. MS didn't think it made sense because "no one used mobile devices for productivity". Stupid MS never figured that a person with a mobile device would want to use it for work instead of carrying a second, larger device. And BYOD is steadily gaining traction, so no more company laptops running Windows.

Cutting redundant workers and refocusing the company is one way to improve. It lowers costs, giving the company more cash and time to restructure. BlackBerry reduced workers for the same reason, only it should have started in 2009 and not 2011. Those lost workers mean lost productivity, but probably not as much as the money... reclaimed.


RE: LOL ok.
By Belegost on 7/15/2014 12:41:35 PM , Rating: 3
This is more of a culture change in the company, a change that started last year when they stepped away from the stack ranking system.

For 15+ years MS has been known to have an overly competitive, back-stabbing, toxic internal culture. The stack ranking review system encouraged this, and the employees that lasted there were the ones best able to thrive in a very combative environment.

This has in turn affected product development, the culture encouraged insular groups that fought against each other, and so products suffered a lack of cohesiveness because the teams making them lacked cohesiveness.

Discussions I have had with friends in the company say that there has been an effort (starting over a year ago) to alter the core culture, to encourage a more cooperative and team environment.

This change requires that a lot of the people who actively encouraged the previous system need to be removed, hence the loss of a number of big names over the last year, people who did not adapt to the changes. I have a feeling that most of these layoffs are going to be identifying and letting go of people seen to not be adapting to the new culture direction.


RE: LOL ok.
By Labotomizer on 7/15/2014 4:18:59 PM , Rating: 2
They missed on Mobile, for sure, and likely partially because of when Bill Gates decided to step aside. He always though it was more important than a lot of other people in the company.

Although I think Citrix and VMware are good examples of what MS can do when they have to compete. HyperV 2012 R2 is really good. Completely on par with VMware? No, and I don't see people ripping VMware out to replace it. But in a new virtual infrastructure? You have to seriously consider using HyperV instead.

XenApp and XenDesk? 2012 R2 has really closed the gap on both published applications and VDI. And again is far, far cheaper since each RDP CAL gives you either publishing apps for users or the VDI license. And in both cases you have to buy the same stuff from MS to make VMware or Citrix solutions work. So MS gets paid either way.


RE: LOL ok.
By atechfan on 7/15/2014 1:03:23 PM , Rating: 3
There are always layoffs when there is a massive acquisition like this. Google laid off a ton of Motorola employees when they purchased their mobile division. Par for the course.


"Nowadays you can buy a CPU cheaper than the CPU fan." -- Unnamed AMD executive














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