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

03.01.09

Cutbacks at Microsoft, More Canceled Products Rumoured (Corrected)

Posted in Apple, Finance, Microsoft at 6:21 pm by Dr. Roy Schestowitz

Was: “Layoffs at Apple, Cutbacks at Microsoft, More Canceled Products Rumoured” (corrected to reflect on the age of the Apple article)

Apple keyboard
Commands to leave a function of reduction in business

Summary: Signs of the stagnating proprietary software business, as seen in Microsoft

THE LATEST NEWS about Novell brought to the discussion some Mac enthusiasts who perceive Apple as invincible (see BetaNews for details). This type of enthusiasm was short lived however. Apple is preparing for layoffs according to new reports [correction: this article is very old], so Microsoft's pains are not so unique now that countries like the UK are looking the other way (adoption of Free software and ODF).

LEAD: Apple Computer Inc. is expected to lay off 400 to 500 employees this week as part of an effort to control expenses, industry executives said. Apple’s growth has slowed, partly because of an industry slump and partly because its product line lacks competitive inexpensive personal computers.

In addition to this, according to an isolated report, Microsoft’s ESP platform is on the ropes right now, just like other services or divisions that Microsoft shut down.

Users of Microsoft’s 3D simulation platform have been rocked by news that the company has laid off off or reassigned most of the of the platform’s developers. However, Microsoft is refusing to comment on the future of the software.

A couple of days ago, reports began to surface where it’s suggested that a 10% pay cut for temporary Microsoft employees is on its way. The only news arriving since then is that it’s confirmed and Microsoft workers are protesting.

Microsoft may have just accomplished what the WashTech labor union tried to do for years — motivating its workers to band together and fight for their common interests. At least, that’s the aim of a new site called MSRateCuts.org, which objects to the pay cuts expected to result from Microsoft’s decision to reduce the rate it pays the agencies that provide many of its temporary workers.

This friendly protest is covered here as well. It did no good.

Temp giant Volt informs workers it will make Microsoft pay cuts

[...]

Volt Workforce Solutions, believed to be the largest provider of Microsoft temporary workers, informed them tonight that it will be cutting their pay by 10 percent as a result of the Redmond company’s decision to reduce the amount it pays employment firms. Volt joins most but not all of the other firms in deciding to pass some or all of the impact of the cuts on to their workers.

All the coverage above comes only from Seattle, which isn’t terribly helpful. Eternal bias from the Seattle press (even blind acceptance of corruption) can be explained by the impact of Microsoft’s demise on the local economy. Press coverage from there drips with agenda simply because of personal interests (selfishness), as opposed to motivation to inform.

Additional coverage (not from Seattle/Washington) can be found in:

From the Seattle P-I, which might be on its death throes:

Many of these temporary workers may also be foreign, i.e. those who are in essence cheaper because they don’t receive benefits (no entitlement) and are not receiving any protection from workers’ unions/regulations. it’s the perfect prey for exploiters of labour — get but hardly give.

Regardless, Microsoft continues to be scrutinised [1, 2, 3, 4] for being the top user of H-1B visas, as reported by IDG:

Microsoft Corp. was the top U.S.-based recipient of H-1B visas in 2008, receiving approval for 1,037 visas, slightly more than in 2007.

BusinessWeek wrote about this too:

Indian Firms, Microsoft Top H-1B List

Critics say the data show that the H-1B visa program is dampening U.S. wages and facilitating outsourcing, a critical problem as the U.S. unemployment rate continues to climb.

Several months ago, BusinessWeek also wrote about H-1B visas "fraud".

Microsoft is not only the #1 company when it comes to these shady practices. It is also the #1 lobbyist in its area, which is nothing to be proud of. In fact, corruption disguised as "lobbying" is how Microsoft obtained those allocations of H-1B visas in the first place, so there is a direct connection between the two activities.

Last but not least, the weakness of Microsoft is showing. Reuters reports on the stock’s fairly rapid decline.

Microsoft says no new cost cuts, shares hit 11-year low

[..]

Microsoft Corp outlined plans to offset revenue declines as the PC market shifts to low-cost netbooks, but it failed to announce more cost cuts, sending its shares to an 11-year low.

That’s despite massive buybacks.

Even pro-Microsoft sites like Barron’s were unable to withhold the evidence.

Bellini writes that the company is not likely to take further expense reduction moves – the company basically said exactly that at the meeting yesterday – and adds that “Microsoft is braced for further deterioration of the macro environment but plans to invest in its products to realize leverage once the market turns around.”

Microsoft is not so accustomed to having its estimates cut or the stock downgraded. For many years it has been faking infinite wealth when it reality it may have lost billions. There is a lot more to be said about Microsoft's financial situation. The party was over a long time ago.

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

A Single Comment

  1. David Gerard said,

    March 1, 2009 at 10:56 pm

    Gravatar

    ESP is the business platform version of Flight Simulator. It’s dead, Jim. Screaming customers, no hope.

    So many companies refuse to believe proprietary software is all that bad until they get their faces rubbed personally in why RMS was right …

What Else is New


  1. Links 28/4/2015: More on Debian 8 “Jessie”, Fedora 22 Beta Walkthrough

    Links for the day



  2. Microsoft is Attacking Android Like Never Before, Qisda the Latest to Sign Patent Extortion Deal

    More blackmail and propaganda against Android, courtesy of the gentler, kinder, 'new' Microsoft



  3. Caution Needed When Microsoft Copywriters Flood the Media With Microsoft Propaganda

    Media actively subverted by Microsoft-sponsored agents of deception, whose goal is to change what people think of Microsoft and its software, even if by lying (they call it 'marketing')



  4. Gartner Staff That Worked for Microsoft and the Latest Nonsense from Gartner or 'Former' Staff

    Gartner waited until 2015 to declare FOSS fit for databases; another example spotted where Gartner staff comes from Microsoft or vice versa



  5. Links 27/4/2015: Debian 9 Named, Linux 4.1 Reaches RC

    Links for the day



  6. Microsoft is Interjecting Itself Into GNU/Linux and Free Software News, Even Events and Foundations

    Microsoft's entryism strategy is proving effective as Microsoft successfully embeds itself inside the idealogical competition, subverting the competition's overall message and diluting the competition's focus on Free software



  7. The Unethical Business of Selling Fear of Free/Libre Software Bugs (Black Duck, Sonatype, and Symantec)

    The spreading of fear of Free/Open Source software (FOSS) is now a growth industry, so proprietary opportunists are eager to capitalise on it, even if by distorting the truth



  8. Patients' Data at Risk as NHS Reinforces Its Microsoft/Accenture Stockholm Syndrome

    The worst privacy violator in the world and the firm behind LSE failures are pocketing as much as £0.35 billion of British taxpayers' money to acquire access to very sensitive data of British people



  9. Links 26/4/2015: Debian 8, OpenMandriva Lx 3 Alpha, Mageia 5 RC

    Links for the day



  10. Links 25/4/2015: Debian LTS Plans, Turing Phone Runs Linux

    Links for the day



  11. Who Kills Yahoo? It's Microsoft, Not Yahoo!

    The media should blame Microsoft, not Marissa Mayer, for what's going on (and has been going on for 7 years) at Yahoo!



  12. EPO Management is Trying Hard to Appease Its Critics While Pushing Forth Unitary Patent Agenda

    The European Patent Office and European Commission promote the agenda of large multinational corporations (at the expense or European citizens) and critics are being kept at bay



  13. Real Patent Reform Will Not Come From Biggest Backers of GNU/Linux, Not Even Google

    A look at the 'new' Google, the company which is hoarding patents (2,566 last year alone) instead of fighting for reform



  14. Microsoft's Troll Intellectual Ventures Loses Software Patents

    Intellectual Ventures is bluffing with software patents, but this time around it doesn't get its way



  15. Links 24/4/2015: Ubuntu and Variants in the News, Red Hat Developer Toolset 3.1

    Links for the day



  16. Links 23/4/2015: Ubuntu 15.04 is Out, Debian 8.0 Out Very Soon

    Links for the day



  17. Links 22/4/2015: Fedora 22 Beta, Atlassian Acquires BlueJimp

    Links for the day



  18. The Dying Debate Over Patent Scope (Including Software Patents) Replaced by 'Trolls' (But Not the Biggest Ones)

    The corporate media and Web sites or people who are funded by large corporations have essentially suppressed any debate about issues in the patent granting process, thereby guarding software patents and preventing criticism of large corporations' power grab



  19. The Patents Gold Rush Continues

    The morbid obsession with monopolising mere ideas still dominates the media, even increasingly in China



  20. 9 Millionth US Patent Tells a Story of Failure and USPTO Misconduct

    The USPTO, much like FISA (notorious court for surveillance/espionage authorisation), has become a rubber-stamping operation rather than a patents examination centre, as new evidence and old evidence serve to show



  21. HBO Helps Shift Debate Over Patents to 'Trolls' (Scale), Not Scope

    More of that awkward shifting of the patent debate towards small actors who are misusing patents, not large conglomerates like Apple and Microsoft which use patents to destroy competitors, crush startups, drive up prices, and so on



  22. Software Patents Are Still Menacing to Free Software: OIN Expands Scope, HEVC Adds to MPEG-LA Burden/Tax, Google and Facebook Give in on Patents

    A look at recent news about software patents and especially Free/libre software, which is inherently incompatible with them



  23. The Latest Developments Around Microsoft's Clever Attack on Android/Linux

    Microsoft's campaign of destruction, extortion, etc. against the most widely used Linux-powered operating system is revisited in light of new reports



  24. The Microsoft 'Community' is Maligning the Free Software Community

    Dishonest generalisations and baseless deductions portray the Free/Open Source software communities as a nasty place that leads to poverty and despair



  25. Googlebombing 'Microsoft Open Source' Even When Microsoft Shuts Down Its 'Open Source' Proxy

    A massive failure by the press to cover the most basic news, which is Microsoft putting an end to a supposedly 'Open Source' effort



  26. Links 22/4/2015: Calculate Linux 14.16, SparkyLinux 4.0 RC KDE

    Links for the day



  27. Links 21/4/2015: Project Photon, Ubuntu Touch Buzz

    Links for the day



  28. Embrace, Extend, Extinguish: How Microsoft Plans to Get Rid of Linux/Android

    Microsoft's sheer abuse against Android is laying bare for everyone to see now that Microsoft has paralysed Google's legal department with potential antitrust action in Europe



  29. Yahoo's Current CEO (Mayer, Formerly of Google) is Trying to End Yahoo! Status as Microsoft Proxy

    There are signs of relinquishing Microsoft's control over Yahoo! after Marissa Mayer worked to end the company's suicidal/abusive relationship with Steve Ballmer's Microsoft



  30. Repeating Microsoft's Lies Without Any Journalistic Assessment

    Poor fact-checking by relatively large media/news sites results in Microsoft's patently false claims being repeated uncritically


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