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Microsoft Set To Axe 18,000 Jobs

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http://www.bbc.co.uk/news/business-28348223

Microsoft is to cut up to 18,000 jobs marking the deepest cuts in the technology firm's 39-year history.

The bulk of the cuts, around 12,500, will be in its phone unit Nokia, which Microsoft bought in April, the firm said.

Microsoft pledged to cut $600m (£350.8m) per year in costs within 18 months of closing the acquisition.

The cuts are much more severe than the 6,000 initially expected.

The firm employs 127,000 globally, including 3,500 staff in the UK.

Microsoft declined to say how many jobs in the UK would be cut as a result of the changes.

Chief executive officer Satya Nadella, who took the helm in February, wants the firm to shift its focus away from software to online services, apps and devices.

Nokia staff to take the brunt of the cuts, although is MS now about to commit corporate suicide by moving away from it's core software business?

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Can't say I'm surprised I work quite a bit with MS, when you meet with them, you always get a room full, yet somehow no-one takes responsibility for getting anything done.

I actually think their current product set is very good indeed (their cloud products in particular) but as a company they are seriously hard to do business with. Very disjointed.

The writing is on the wall for paid software anyway, the future is in Cloud and Services - this will cause tensions with their partner organisations though.

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It's expected, they're still a technology monolith and so are at the forefront of automating jobs.

While Google have stolen their thunder, I don't think they're in mortal peril when Windows Phone is a rapidly growing alternative to the Android consensus ( outmaneuvering Blackberry), Bing is better than Yahoo, and their XBone is in a solid 2nd place next to PS4 (not thrown into crisis like Nintendo has been with the mismarketed WiiU).

Edited by Big Orange

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Can't say I'm surprised I work quite a bit with MS, when you meet with them, you always get a room full, yet somehow no-one takes responsibility for getting anything done.

I actually think their current product set is very good indeed (their cloud products in particular) but as a company they are seriously hard to do business with. Very disjointed.

The writing is on the wall for paid software anyway, the future is in Cloud and Services - this will cause tensions with their partner organisations though.

With the US spooks teaming up with major US IT companies, no business in their right mind is going to entrust sensitive data to 'the Cloud'. It's pretty obvious that universal surveillance has a strong economic motive behind it, for those doing the snooping.

MS are pretty screwed - their Windows desktop monopoly is looking less relevant as people turn to alternatives to conventional PCs, even in the traditional PC maket ChromeOS is growing share and Mac OSX is doing well, and their enterprise level solutions are still crud.

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I was given a power mac to use at work. It's just a Linux box with shitty key mappings, would rather just use Ubuntu.

Can't see the need for windows anymore, 99% of the PC's across 130+ locations in our company are linux boxes and mac's.

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While Google have stolen their thunder, I don't think they're in mortal peril when Windows Phone is a rapidly growing alternative to the Android consensus ( outmaneuvering Blackberry), Bing is better than Yahoo, and their XBone is in a solid 2nd place next to PS4 (not thrown into crisis like Nintendo has been with the mismarketed WiiU).

Windows Phone is a rapidly growing alternative to Android? I've only ever seen one Windows phone, and the person using it said they couldn't wait until their contract ran out so they could get an iPhone.

Bing search is better than Yahoo? Yahoo uses Bing for its searches! They farmed it out a couple of years ago.

Xbox is in second place after the PS4? There are only two high-end consoles. What other place could it be in?

I'm guessing you work for Microsoft. Hope you're not one of the ones getting laid off.

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They are doing exactly what google did. Just a few years behind. Google used their corporate cash pile (from search) to buy Motorola mainly for their patents which they now have a decent license for. They promptly released Android phones used some manufacturing expertise and then sold the business to a Chinese company to run with cheap labour.

Microsoft bought Nokia, got the patents and will now "integrate" by stripping out most of Nokia's manufacturing and marketing areas. They will then sell something in a couple of years to a Chinese company who can better utilise the assets. MS is a footloose company it shouldn't have a heavy manufacturing base. Always outsource capital intensive industries to the Chinese where cost of Labour and regulatory burdens are low.

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With the US spooks teaming up with major US IT companies, no business in their right mind is going to entrust sensitive data to 'the Cloud'. It's pretty obvious that universal surveillance has a strong economic motive behind it, for those doing the snooping.

MS are pretty screwed - their Windows desktop monopoly is looking less relevant as people turn to alternatives to conventional PCs, even in the traditional PC maket ChromeOS is growing share and Mac OSX is doing well, and their enterprise level solutions are still crud.

Maidsafe will become an interesting encrypted and distributed cloud technology, IMO. Http://www.maidsafe.org

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A metaphor shamelessly copied from a podcast series I've been listening to;

Once upon a time there was a boy. He was very tall and he was kind of an outsider and he wore enormous plastic glasses and this boy loved to play with the other children in his street and neighborhood but they thought he was kind of weird because they played baseball and football and they played soccer and basketball and volleyball and even shot marbles and they had balls of all different sizes and colors and shapes and he had a ball of his own.

He made it out of gaffer’s tape or duct tape. A huge ball of silver tape and it kept getting torn and broken and he kept sticking more and more pieces on this ball of tape until eventually, it was bigger than he was. This ball of tape was six feet in diameter and it was his best friend and he was really happy with this ball of tape and the other kids would be shooting marbles and playing baseball and football and soccer and volleyball and they’d see him wandering down the street, rolling this enormous ball of tape and they go, oh no, here he comes again.

He remained an outcast because of this but when he grew up, he became very technologically astute and he decided to create something for computers which were in their infancy at the time and so, keeping his enormous pair of glasses, he decided to make an operating system but the only model he had was his ball of gaffer tape. And so, he made an operating system that closely resembled an enormous ball of tape and there’d be holes in it and periodically, about every 10 minutes, it would crash and fall apart and it raged people.

And so, he found a way to send them a few fresh pieces of tape every week and the operating system became an enormous ball of tape and when it got so big, he couldn’t roll it around anymore. Guess what he did? He created a brand new one out of a different kind of tape, scotch tape or masking tape or surgical tape until that became too big and torn and he’d sent more pieces to stick on the enormous ball of tape but his friends, they got out of that altogether.

They got rid of all the balls they played with and they got something that looked like a ball but it wasn’t.

It was an apple.

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With the US spooks teaming up with major US IT companies, no business in their right mind is going to entrust sensitive data to 'the Cloud'. It's pretty obvious that universal surveillance has a strong economic motive behind it, for those doing the snooping.

MS are pretty screwed - their Windows desktop monopoly is looking less relevant as people turn to alternatives to conventional PCs, even in the traditional PC maket ChromeOS is growing share and Mac OSX is doing well, and their enterprise level solutions are still crud.

No one is buying chrome or osx in serious quantity in the business space. A few execs are wandering around with underutilised iPads and iPhone has a good hold on corporates but most desk workers have a windows desktop or laptop.

The story is not one of windows being usurped (perhaps in the consumer space yes) but a simultaneous functional plateau in both software and hardware.

A super amoled super HD screen, high powered base unit with tons of excess memory and proc power means nothing to the spreadsheet jockey who would be quite happy with the functions of excel 2003 and nothing else. Computers last a while, there's no compelling reason to upgrade and with everything coming in as a service over the LAN/WAN local spec is even less important. Xp is still a perfectly fine operating system for most corporate needs. Win7 is fine.

Win8 was a disastrous pushing of consumer function onto MS' core market.

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Apparently they dropped the subscription price of their MS Office in the US this week. I read that they will do the same thing in the UK in.... October...

I suspect all the cheaper or free Office type suites are seriously eating into their Office business.

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Yep. Steven Elop was always going to be a sleeper. Got to Nokia, sandbagged it to the point it was taken over by MS and now it's been destroyed. It's the ABC of takeovers.

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No one is buying chrome or osx in serious quantity in the business space. A few execs are wandering around with underutilised iPads and iPhone has a good hold on corporates but most desk workers have a windows desktop or laptop.

The story is not one of windows being usurped (perhaps in the consumer space yes) but a simultaneous functional plateau in both software and hardware.

Office rather than windows has been the cash cow in recent years and thats being heavily eroded by free alternatives such as google docs.

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They need to ditch the activation stuff and accept piracy as a necessary evil. Whatever they lose from licensing income through casual piracy they get back through increased network effect. It's what brought them to power in the 90s and early 2000s.

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when you meet with them, you always get a room full, yet somehow no-one takes responsibility for getting anything done.

Sounds alarmingly familiar, and not just with MS but almost every large org out there! Loads of people come along to meetings and then feel the need to say something (that often has no relevance or is either blindingly obvious or stupid) simply to justify their existence in the company.

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Can't say I'm surprised I work quite a bit with MS, when you meet with them, you always get a room full, yet somehow no-one takes responsibility for getting anything done.

I actually think their current product set is very good indeed (their cloud products in particular) but as a company they are seriously hard to do business with. Very disjointed.

The writing is on the wall for paid software anyway, the future is in Cloud and Services - this will cause tensions with their partner organisations though.

Been a Microsoft Partner for 15 years and agree re product set pretty good now. The trouble is their service attitude, coincidently just overheard one of my analysts on the service desk being called back by HP support in the US on a SAN problem we have - they seem to have got their act together.

Friend of mine said running a restaurant is like this you can sell great food with poor service and eventually you will close or you can sell food that is good and deliver great service that restaurant will thrive, whilst as someone said MS aren't going anywhere they are the former.

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