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Microsoft Fires 7,800: Second Biggest Mass Layoff In Its History

It has been almost exactly one year since Micorsoft announced it would fire a record 18,000 people (surpassing the previous all time high layoff round of 5,800 in 2009) form a company that one upon a time seen as infallible as AAPL. So perhaps in order to release more funds with which to buy back its struggling stock, moments ago Microsoft did what it had to do to make corporate executives richer, and reported it would lay off another 7,700 workers.

From the press release:

Microsoft Corp. today announced plans to restructure the company’s phone hardware business to better focus and align resources.
Microsoft also announced the reduction of up to 7,800 positions, primarily in the phone business
. As a result, the company will record an impairment charge of approximately $7.6 billion related to assets associated with the acquisition of the Nokia Devices and Services (NDS) business in addition to a restructuring charge of approximately $750 million to $850 million.
Today’s announcement follows recent moves by Microsoft to better align with company priorities, including recent changes to Microsoft’s engineering teams and leadership, plans to transfer the company’s imagery acquisition operations to Uber, and shifts in Microsoft’s display advertising business that enable the company to further invest in search as its core advertising technology and service.
Today’s plans were outlined in an email from Microsoft CEO Satya Nadella to Microsoft employees.

“We are moving from a strategy to grow a standalone phone business to a strategy to grow and create a vibrant Windows ecosystem including our first-party device family,” Nadella said. “In the near-term, we’ll run a more effective and focused phone portfolio while retaining capability for long-term reinvention in mobility.”
Microsoft will record a charge in the fourth quarter of fiscal 2015 for the impairment of assets and goodwill in its Phone Hardware segment, related to the NDS business. This charge has no impact on cash flow from operations and is nondeductible for income tax purposes. Based on the new plans, the future prospects for the Phone Hardware segment are below original expectations. Accordingly, the company concluded that an impairment adjustment of its Phone Hardware segment assets and goodwill of approximately $7.6 billion is required.

Strengthening of the jobless recovery, although I'm really impressed with the meaningless management BS about sacking the workings to grow and create!

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“We are moving from a strategy to grow a standalone phone business to a strategy to grow and create a vibrant Windows ecosystem including our first-party device family,” Nadella said. “In the near-term, we’ll run a more effective and focused phone portfolio while retaining capability for long-term reinvention in mobility.”

I have read that about 5 times and still none the wise, typical corporate crap. I no longer wonder what it takes to get to the top; be ruthless, talk BS and above all, be absolutely incompetent.

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Microsoft make great mice.

Dont like their desktop OSes.

Notsure about the phones all though Im will to try.

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“We are moving from a strategy to grow a standalone phone business to a strategy to grow and create a vibrant Windows ecosystem including our first-party device family,” Nadella said. “In the near-term, we’ll run a more effective and focused phone portfolio while retaining capability for long-term reinvention in mobility.”

I have read that about 5 times and still none the wise, typical corporate crap. I no longer wonder what it takes to get to the top; be ruthless, talk BS and above all, be absolutely incompetent.

I think it means they are going infect their phones with the same crap as they put on tablets and PCs. Also, cut the number of phones they make while still doing a bit of R&D.

But yes, this kind of corporate BS speak is exactly why MS on the same journey as IBM. They'll take a very long time to die - but to the average person they'll become less and less relevant.

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“We are moving from a strategy to grow a standalone phone business to a strategy to grow and create a vibrant Windows ecosystem including our first-party device family,” Nadella said. “In the near-term, we’ll run a more effective and focused phone portfolio while retaining capability for long-term reinvention in mobility.”

I have read that about 5 times and still none the wise, typical corporate crap. I no longer wonder what it takes to get to the top; be ruthless, talk BS and above all, be absolutely incompetent.

They have to drop the name "Windows". Call it something else, spend about $1bn in advertising, paying celebrities to use it, and advertise it. Make it a premium must have product, pay some people in 3rd world countries to say that they have sold their kidneys to buy the product, and you have a WINNER. Spend zero on trying to tweak things. It's all about brainwashing.

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Perosnally, I think MS have reached a stage where they are putting more bugs into working software than adding features.

I have heard, via a 3rdparty, that the MS Exchange code base - includes everything that you think of connected with networks - has reached a point where its at total collapse.

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Microsoft make great mice.

Dont like their desktop OSes.

Notsure about the phones all though Im will to try.

I always swear by A MS mouse, xbox360 was brilliant too, i think that's all the good they done :)

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My Nokia Lumia 930 is in perfect working order.

More and more tech conglomerates slicing more slices out the pie and supertech has become much, much cheaper.

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I've always liked MS phones. If that's what the next gen looks like I can see myself getting another.

MS Office 2003 is still a favourite! Solid and streamlined, no visual bloat.

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They have to drop the name "Windows". Call it something else, spend about $1bn in advertising, paying celebrities to use it, and advertise it. Make it a premium must have product, pay some people in 3rd world countries to say that they have sold their kidneys to buy the product, and you have a WINNER. Spend zero on trying to tweak things. It's all about brainwashing.

call it the name of a fruit, i wonder why that has not been done.

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the name "windows" was excellent for the first few iterations. you watched your programs work viewed through a window. perfect.

Doesnt seem to be like that now what with default full screens so the name doesnt mean much more than how people feel about the product now.

Edited by Bloo Loo

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They have to drop the name "Windows". Call it something else, spend about $1bn in advertising, paying celebrities to use it, and advertise it. Make it a premium must have product, pay some people in 3rd world countries to say that they have sold their kidneys to buy the product, and you have a WINNER. Spend zero on trying to tweak things. It's all about brainwashing.

Wouldn't go so far as call it brainwashing - but I do think the Windows name is poison to a significant group of people nowadays, and the alternatives are increasingly good enough and less costly.

Edited by StainlessSteelCat

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“We are moving from a strategy to grow a standalone phone business to a strategy to grow and create a vibrant Windows ecosystem including our first-party device family,” Nadella said. “In the near-term, we’ll run a more effective and focused phone portfolio while retaining capability for long-term reinvention in mobility.”

I have read that about 5 times and still none the wise, typical corporate crap. I no longer wonder what it takes to get to the top; be ruthless, talk BS and above all, be absolutely incompetent.

My BS translator comes up with

"No hardware, just software"

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Guest eight

call it the name of a fruit, i wonder why that has not been done.

My real life surname is the name of a fruit and it's never done me any favours.

Was Paul Lemon a good footballer? Does Fiona Apple sound like a well adjusted individual? Was Jason Orange the best one out of Take That? I rest my case....

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Windows 10 on a phone is a neat idea though. Plug your phone into a keyboard and screen and it becomes a PC.

Mobile phones are actually slowly dying. In the future calls will be VOIP and made though whatever data connection is available to the phone, home broadband at home; company WiFi at work; free WiFi in lots of public spaces, and the old GSM network will only be used if there is no data option available. The phone in your pocket will be a PC with some comms apps on it.

WiFi in laptops will also die. People will plug their phones into the laptop and use it for comms (called tethering).

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Windows 10 on a phone is a neat idea though. Plug your phone into a keyboard and screen and it becomes a PC.

Mobile phones are actually slowly dying. In the future calls will be VOIP and made though whatever data connection is available to the phone, home broadband at home; company WiFi at work; free WiFi in lots of public spaces, and the old GSM network will only be used if there is no data option available. The phone in your pocket will be a PC with some comms apps on it.

WiFi in laptops will also die. People will plug their phones into the laptop and use it for comms (called tethering).

Ubuntu tried to make your phone your computer - https://www.indiegogo.com/projects/ubuntu-edge#/story

it looked like a great phone - and a great idea. But it was ahead of the curve and no one went for it. Everyone can see the future, but I think apple, with their brainwashing marketing are going to get the lemmings to adopt the technology through "shinyness"

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Perosnally, I think MS have reached a stage where they are putting more bugs into working software than adding features.

I have heard, via a 3rdparty, that the MS Exchange code base - includes everything that you think of connected with networks - has reached a point where its at total collapse.

I think they reached that stage many years ago ... instead of fixing bugs and optimising code with new releases, they just kept piling more and more crap 'features' into the software which made it even buggier and more bloated.

At work we recently switched to using the latest version of MS Office and it's bloody awful ... it's got so much crap built in that it's hard to find out how to do basic things, it slows hardware to a crawl (which ran the older version just fine), seems to have generated hundreds of megabytes of additonal patch downloads every week, seems to be riddled with bugs and is actually extremely hard to read onscreen due to adopting a flat style with little contrast between the interface elements. Oh yeah, they've now re-branded the already buggy 'Lync' (which replaced messenger, which actually worked half-decently) as 'Skype' and this seems to be causing lots of problems too.

How they keep foisting this expensive turd onto commercial businesses, I don't know.

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Wouldn't go so far as call it brainwashing - but I do think the Windows name is poison to a significant group of people nowadays, and the alternatives are increasingly good enough and less costly.

Yes - but the Windows branding is important to get across the point that you can run your legacy software base.

Look at the disastrous Windows 8 - the regular desktop version was loathed but eventually somewhat accepted (especially after the 8.1 update) but the Windows RT version which looked and worked the same but crucially, didn't run your old Windows software, sank without a trace. 'Windows' that didn't run existing Windows software had nothing going for it, at all.

We can infer from that, that Windows most desirable feature is that it runs your existing software and the fact that it's called 'Windows' and branded as such underpins this. Renaming it won't stop it running older software but it will undermine marketing it and further weaken the product. It's already taken a beating from the Windows 8 debacle and the growth of rival computing operating systems running on mobile hardware - Android and iOS - and is also facing a real threat in the laptop space from ChromeOS. It can't afford to give up the universally known Windows name which carries with it the association with the masses of legacy Windows software that runs on it.

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My real life surname is the name of a fruit and it's never done me any favours.

Was Paul Lemon a good footballer? Does Fiona Apple sound like a well adjusted individual? Was Jason Orange the best one out of Take That? I rest my case....

Are you one of the famous Darlo Kumquats?

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