EditorsAbout the SiteComes vs. MicrosoftUsing This Web SiteSite ArchivesCredibility IndexOOXMLOpenDocumentPatentsNovellNews DigestSite NewsRSS

01.22.09

Microsoft Cuts Contractors Spendings by Almost 15%

Posted in Microsoft at 5:17 pm by Dr. Roy Schestowitz

Layoff figures only half the picture

MOST people have already heard about Microsoft's layoffs, but there are related aspects that Microsoft is pretty much concealing, such as those who are on contract (c.f. Abramoff visas fiasco).

Beneath or between the lines, people can find that up to 15% of the contractors (or vendors) might be cut, so the headcount mentioned in the headlines does not tell the full story.

The software maker is trimming costs for travel, freezing wages, scaling back a massive expansion to its Redmond campus and looking to cut what it spends on contractors and vendors by up to 15 percent.

It’s interesting and worth noting that a high executive from Microsoft denied layoffs (in the on-line media) about 2 months ago. He seems to have lied and it’s worth bearing in mind now that Microsoft denies investing in a lawsuit against IBM. In general, Microsoft makes it very hard to trust what it tells the public.

“…Microsoft wished to promote SCO and its pending lawsuit against IBM and the Linux operating system. But Microsoft did not want to be seen as attacking IBM or Linux.”

Larry Goldfarb, Baystar, key investor in SCO

Share this post: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • del.icio.us
  • Reddit
  • co.mments
  • DZone
  • email
  • Google Bookmarks
  • LinkedIn
  • NewsVine
  • Print
  • Technorati
  • TwitThis
  • Facebook

If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

Pages that cross-reference this one

8 Comments

  1. mpz said,

    January 22, 2009 at 5:45 pm

    Gravatar

    Well, as the recent high-profile, extreme company collapses have shown – lying about a public company’s state is no longer a punished crime. And even if a few of those involved in the bigger ones are held to account, the later and smaller ones will probably never be pursued, if only because of lack of resources.

    I can’t get over that some of the reports are claiming it was a ‘shock’ that they didn’t make earnings forecasts – aren’t these people paid to have at least half a clue? All this giving away of windows has to hurt revenue.

    Oh, and in addition to the cuts, a hiring freeze will probably mean the employee headcount will be even lower at the end of the year, even if they don’t announce them as cuts. Although why they wouldn’t is beyond me – the stock market simply loves when a company slashes the slaves head’s off.

  2. Roy Schestowitz said,

    January 22, 2009 at 5:50 pm

    Gravatar

    It fell down to $17.

    By the way, they missed already muchly-lowered estimates.

  3. Gentoo User said,

    January 22, 2009 at 5:53 pm

    Gravatar

    so the headcount mentioned in the headlines does not tell the full story.

    They also said they are going to hire in some divisions, IIRC.

    It’s interesting and worth noting that a high executive from Microsoft denied layoffs (in the on-line media) about 2 months ago.

    It’s also interesting to note that you have no proof that he was lying, as opposed to simply not being aware that what happened today would happen. Was it Ballmer? Who? Why are not linking to that bit of news?

    and it’s worth bearing in mind now that Microsoft denies investing in a lawsuit against IBM

    That has nothing to do with anything, just in case you are using it as some sort of “Microsoft lies” argument. You recently lied about people working on behalf of Microsoft to “censor” Wikipedia, which that was revealed as nothing more than a smear, so does that invalidate everything you’ve said since then?

    And more importantly, you have no proof that Microsoft is indeed behind the IBM lawsuit, do you? If you do, then why didn’t you provide it in the post you linked to?

    Microsoft makes it very hard to trust what it tells the public

    In general, no different than most of what you say.

    (Note: The lame disclaimer text below is pasted by someone who spends massive amounts of time criticizing software he doesn’t even use)

    Note: comment arrived from a witch hunter that does not even use GNU/Linux.

  4. Roy Schestowitz said,

    January 22, 2009 at 7:53 pm

    Gravatar

    Update:

    “Just how many contractors who work for Microsoft will lose their jobs? Microsoft will not comment. But the tally is probably close to if not more than 5,000.”

    http://blog.seattlepi.nwsource.com/microsoft/archives/160115.asp?source=rss

    That makes a total that may exceed 10,000 people who lost their job at/for Microsoft, so it aligns with some early estimates.

  5. The Mad Hatter said,

    January 22, 2009 at 10:12 pm

    Gravatar

    The problem is that Microsoft, and Microsoft employess continually lie, and both appear constitutionally incapable of not lying. Consider all of the vapor ware that has been announced over the last 25 years where no product was ever released, or the product was released without many of the promised features, and tell me why we should believe them?

  6. Roy Schestowitz said,

    January 22, 2009 at 10:39 pm

    Gravatar

    Microsoft has no new projects/products to facilitate a turnaround. Its latest products that are few (Surface, Zune, Vista) are a total disaster.

    As for those people whom Microsoft sacked just now… do they receive a complimentary Surface to take home? I mean, they sit there in the warehouse and nobody touches them anyway. They cost over $13,000 each.

    “We feel a huge threat from Linux” — Jim Allchin

    “I am Scared [of GNU/Linux]” — Jim Allchin

    Replying to “who is Microsoft’s biggest competitor now, who would it be?” said Ballmer: “Open…Linux. I don’t want to say open source. Linux, certainly have to go with that.”

    Ozzie made a similar remark some months ago.

  7. Jose_X said,

    January 23, 2009 at 9:07 am

    Gravatar

    >> > Microsoft makes it very hard to trust what it tells the public

    >> In general, no different than most of what you say.

    Yes, whatever the motives for any particular circumstance, both of these two mentioned (and myself and …) make mistakes and say things that end up being incorrect.

    Microsoft should be held to a higher standard for very good reasons, many people pay them very good money, in part, to be precise and provide a certain quality of service to investors and to customers. The standard they are held to is understood to be greater than what applies to BN. The markets and federal authorities treat what is said on BN and what Microsoft say a little differently. Plus, you can usually verify what is discussed on BN as well as BN can, while many of these items discussed that come from Microsoft cannot be confirmed as easily by third parties.

    That said, every company is going to have problems, but this should be corrected as quickly as resources will allow — so maybe Microsoft really is having a cash problem. Their stockholders don’t want to leave any behind to run the show at the standards consumers and various government authorities would like.

    BN would probably consider it a victory if Microsoft was seen just as faulty as some seem to view BN. I’m also sure that if a billion or two was injected into BN, the quality and polish would definitely rise.

    [Don't take this as an insult, Roy. I think you recognize that BN is not polished. It's a "best effort" given the resources available, time pressures, and the goals for the site. I find it extremely valuable, btw. Reading this site is a bit like digging for gems in a muddy field that has them. You will get dirty, but the effort is worthwhile. Anyone upset with any info on any blog posting can complain in the comments section.]

    >> You recently lied about people working on behalf of Microsoft to “censor” Wikipedia, which that was revealed as nothing more than a smear, so does that invalidate everything you’ve said since then?

    I don’t think anyone proved that either of those individuals did not work for Microsoft (“Jimmi” apparently did claim he worked for someone else — is that his real name, btw?), were not associated with Microsoft, or, more accurately, that Microsoft was not behind their work products in some way.

    However, you are correct in saying that Roy didn’t prove the connection did exist and that apparently he was mistaken as to the precise details about who did which edit on that ACPI page.

    Some of the errors have been corrected on that entry. I’m not sure if all have, but the comment section is there for anyone to review and this is mentioned at the top. Is someone willing to pay BN, $50, $100, or more to homogenize that blog posting with the comments more accurately than it stands now. Part of that cash would go so that a BN rep (or Roy since he wrote that piece) review all the comments carefully (and follows the links and does whatever other work is necessary). $100 may be too little to justify the distraction since the comments there already speak for themselves, but I’m just suggestion a figure to get the ball rolling.

    Maybe we can also chip in $50 to Microsoft so that they tighten up the quality of the accuracy and clarity of the information they provide the market.

    Anyone else think this is a great idea?

  8. Roy Schestowitz said,

    January 23, 2009 at 9:26 am

    Gravatar

    Microsoft was actually sued for deceiving.

What Else is New


  1. IRC Proceedings: August 9th, 2015 – August 29th, 2015

    Many IRC logs



  2. “Conservative” Site Responds (Yet Again) to Misguided “Conservative” Efforts to Derail Patent Reform in the US

    Patent trolls throw stones in glass houses, contributing to their own unpopularity, but some influential “Conservatives” continue to defend (conserve) them



  3. Increase in Lobbying for Software Patents in Europe and Its Trojan Horse, the Unitary Patent (UPC)

    The relentless campaigns to bring software patents into Europe have not stopped and so-called 'unification' -- much like so-called 'trade' deals -- serves to support them



  4. Microsoft Technology Crashes Financial Markets, Again

    SunGard, which is a Microsoft shop, is clearly failing to provide what it calls mission-ciriticaal [sic] solutions



  5. Alice v. CLS Bank (Alice/§101) Comes to Squash Software Patents Even in Eastern District of Texas

    The crackdown on software patents is coming along nicely and the Alice case is now being utilised even in the capital of patent trolls



  6. Apple's Patent Cases Against Android Are Falling Apart, as Acknowledged Even by the Anti-Android Lobby





  7. Links 29/8/2015: NetworkManager 1.0.6, Systemd Merges “su” Command Replacement

    Links for the day



  8. Microsoft Loves Linux to Death and Still Tries to Kill GNU/Linux

    Microsoft's relentless attacks on GNU/Linux and Free software in general (even if it runs on Windows) are so evident that claims of 'love' remain laughable at best (if not infuriating)



  9. Censorship, Self-Censorship and Intimidation Now the Modus Operandi at EPO

    The European Patent Office has ceased even trying to pretend that it respects human rights, including the right to free speech



  10. Patent Practitioners: "The Unitary Patent Might be Able to Open the Floodgates for Software Patents in Europe"

    The EPO-backed Unitary Patent scheme threatens to bring software patents to Europe and along with them a lot of patent trolls from all around the world (especially the United States)



  11. Microsoft Lies About Vista 10 and Increases Microsoft Surveillance (Even Beyond Vista 10 and Into Android, Vista 7/8)

    Windows surveillance expands retroactively, making its way into platforms other than Windows and also expanding to predecessors of Vista 10



  12. Another Suicide at the EPO, Fifth by Our Count

    Yet another EPO member of staff has just committed suicide, leading to the inevitable question: how many people need to die before Battistelli and his minions are out of the Office for good?



  13. Links 27/8/2015: ownCloud Desktop Client 2.0, Red Hat Downgraded

    Links for the day



  14. Microsoft-connected Mesosphere Threatens to Eliminate Free Software in the Datacentre

    Hiding behind a misleading 'open' label while actually backed by Microsoft (and based on new rumours may join Microsoft), Mesosphere wishes to eradicate Free and back doors-free software in large datacentres hosting a lot of physical and virtual servers



  15. Microsoft Aggression Against GNU/Linux Amid Vista 10's Failure

    A look at the recent assault on GNU/Linux in Munich and the likely cause for this assault (in such a timely fashion, too)



  16. Message to LinuxCon Regarding Microsoft: “It is Necessary to Get Behind Someone in Order to Stab Them in the Back.” -Sir Humphrey Appleby

    Jim Zemlin, executive director of the Linux Foundation, helps Microsoft gain influence in the Foundation after payments are received



  17. Market Share Estimates Confirm That Vista 10 Failed in a Major Way

    Confirmatory evidence that Vista 10 is failing in the market about a month after its much-hyped (paid coverage) release



  18. When Microsoft, the Master of Patent Trolls, Complains About Trolls

    Possibly the world's biggest patent abuser and monopolist, which also creates many patent trolls (including by far the biggest one), takes on a far smaller abuser in Court



  19. Letter Signed by Two German Officials Becomes a Microsoft Weapon of Propaganda

    Microsoft and its minions refuse to leave Munich alone, even though the vast majority in Munich are perfectly happy with Free/libre software



  20. Links 25/8/2015: Linux Kernel 4.2 Final RC, KDE Ships Plasma 5.4.0

    Links for the day



  21. Sabine Pfeiler and Otto Seidl Should Take Note as Russia -- Like China -- is in the Process of Banning Microsoft Windows for Security Reasons

    A look at a strange suggestion, signed by Sabine Pfeiler and Otto Seidl, who suggest going back to Microsoft which is basically a spyware company now



  22. Microsoft Windows Leads to Espionage and Blackmail: Latest Examples

    Another news overview, detailing high-profile examples of high-cost Windows deployments (including the cost of litigation and settlement)



  23. Links 23/8/2015: BcacheFS Benchmarks, Blackphone 2

    Links for the day



  24. Links 22/8/2015: Chromebook Gains, GNOME 3.18 Clues

    Links for the day



  25. Alice v. CLS Bank (the Alice Case/§101) Continues to Crush Software Patents in the United States

    Patent scope in the United States continues to be narrowed down as more software patents get their wings clipped



  26. Company of Hype and 'Fanbois' Continues Its Patent Attacks on Android/Linux

    Apple's attacks on Android (using bogus patents) may be soon be escalated to the US Supreme Court (SCOTUS)



  27. EPO Corruption of Patent Boundaries: Business Methods and Algorithms Patented

    How the European Patent Office (EPO) not only turns a blind eye to European law while patenting or granting patents on software but also openly advocates this now



  28. Who's Obsessing Over Patent Trolls in Latest 'Reform' Efforts? Larger Patent Trolls Such as Xerox

    Response to claims that the patent problem is being tackled by focusing on patent trolls and their favourite courts in the Eastern District of Texas



  29. Links 20/8/2015: Fedora 24 Plans, Ubuntu Phones in India

    Links for the day



  30. Blackmail and Lies From the Press and the Government of New Zealand Attempt to Sell to the Public a Deal That Broadens Patent Scope

    Corporate conquest or takeover of New Zealand culminates in empty promises from government officials and blackmail against citizens of New Zealand, especially the country's dairy industry


CoPilotCo

RSS 64x64RSS Feed: subscribe to the RSS feed for regular updates

Home iconSite Wiki: You can improve this site by helping the extension of the site's content

Home iconSite Home: Background about the site and some key features in the front page

Chat iconIRC Channel: Come and chat with us in real time

CoPilotCo

Recent Posts