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


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


    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. Luxembourg Can Become a Hub of Patent Trolls If the EPO Carries on With Its 'Reforms', Even Without the UPC

    With or without the Unified Patent Court (UPC), which is the wet dream of patent trolls and their legal representatives, the EPO's terrible policies have landed a lot of low-quality patents on the hands of patent trolls (many of which operate through city-states that exist for tax evasion -- a fiscal environment ripe for shells)

  2. The Patent 'Printing Machine' of the EPO Will Spawn Many Lawsuits and Extortions (Threats of Lawsuits), in Effect Taxing Europe

    The money-obsessed, money-printing patent office, where the assembly line mentality has been adopted and patent-printing management is in charge, is devaluing or diluting the pool of European Patents, more so with restrictions (monetary barriers) to challenging bad patents

  3. Links 17/3/2018: Varnish 6, Wine 3.4

    Links for the day

  4. Deleted EPO Tweets and Promotion of Software Patents Amid Complaints About Abuse and Demise of Patent Quality

    Another ordinary day at the EPO with repressions of workforce, promotion of patents that aren't even allowed, and Team UPC failing to get its act together

  5. Guest Post: Suspected “Whitewashing” Operations by Željko Topić in Croatia

    Articles about EPO Vice-President Željko Topić are disappearing and sources indicate that it’s a result of yet more SLAPP from him

  6. Monumental Effort to Highlight Decline in Quality of European Patents (a Quarter of Examiners Sign Petition in Spite of Fear), Yet Barely Any Press Coverage

    he media in Europe continues to be largely apathetic towards the EPO crisis, instead relaying a bunch of press releases and doctored figures from the EPO; only blogs that closely follow EPO scandals bothered mentioning the new petition

  7. Careful Not to Conflate UPC Critics With AfD or Anti-EU Elements

    The tyrannical Unified Patent Court (UPC) is being spun as something that only fascists would oppose after the right-wing, anti-EU politicians in Germany express strong opposition to it

  8. Links 15/3/2018: Qt Creator 4.6 RC, Microsoft Openwashing

    Links for the day

  9. PTAB Continues to Increase Capacity Ahead of Oil States; Patent Maximalists Utterly Upset

    The Patent Trial and Appeal Board (PTAB) sees the number of filings up to an almost all-time high and efforts to undermine PTAB are failing pretty badly -- a trend which will be further cemented quite soon when the US Supreme Court (quite likely) backs the processes of PTAB

  10. Patent Maximalists Are Still Trying to Create a Patent Bubble in India

    Litigation maximalists and patent zealots continue to taunt India, looking for an opportunity to sue over just about anything including abstract ideas because that's what they derive income from

  11. EPO Staff Has Just Warned the National Delegates That EPO's Decline (in Terms of Patent Quality and Staff Welfare) Would Be Beneficial to Patent Trolls

    The staff of the EPO increasingly recognises the grave dangers of low-quality patents -- an issue we've written about (also in relation to the EPO) for many years

  12. The EPO is a Mess Under Battistelli and Stakeholders Including Law Firms Will Suffer, Not Just EP Holders

    As one last 'gift' from Battistelli, appeals are becoming a lot more expensive -- the very opposite of what he does to applications, in effect ensuring a sharp increase in wrongly-granted patents

  13. The EPO Under Battistelli Has Become Like China Under Xi and CPC

    The EPO is trying very hard to silence not only the union but also staff representatives; it's evidently worried that the lies told by Team Battistelli will be refuted and morale be affected by reality

  14. Links 14/3/2018: IPFire 2.19 – Core Update 119, Tails 3.6

    Links for the day

  15. Links 13/3/2018: Qt Creator 4.5.2, Tails 3.6, Firefox 59

    Links for the day

  16. Willy Minnoye (EPO) Threatened Staff With Disabilities Said to Have Been Caused by the EPO Work Pressures

    Willy Minnoye, or Battistelli's 'deputy' at the EPO until last year, turns out to have misused powers (and immunity) to essentially bully vulnerable staff

  17. IAM and IBM Want Lots of Patent Litigation in India

    Having 'championed' lobbying for litigation Armageddon in China (where IBM's practicing business units have gone), patent maximalists set their eyes on India

  18. The Patent Trolls' Lobby (IAM) Already Pressures Andrei Iancu, Inciting a USPTO Director Against PTAB

    Suspicions that Iancu might destroy the integrity of the Office for the sake of the litigation ‘industry’ may be further reaffirmed by the approach towards patent maximalists from IAM, who also participated in the shaming of his predecessor, Michelle Lee, and promoted a disgraced judge (and friend of patent trolls) for her then-vacant role

  19. Patent Trolls in the United States Increasingly Target Small Businesses Which Cannot Challenge Their Likely-Invalid Software Patents

    South by Southwest (SXSW Conference/Festivals in Austin, Texas) has a presentation about patent trolls, whose general message may be reaffirmed by recent legal actions in Texas and outside Texas

  20. EPO Staff Union Organises Protest to Complain About Inability “of the Office to Recruit the Highly Qualified Staff it Needs.”

    Having already targeted union leaders and staff representatives, the EPO may soon be going after those whom they passionately represented and the staff union (SUEPO) wants the Administrative Council to be aware

  21. Battistelli Likes to Describe His Critics as 'Nazis', Team UPC Will Attempt the Same Thing Against UPC Critics

    Demonising one's opposition or framing it as "fascist" is a classic trick; to what degree will Team UPC exploit such tactics?

  22. Session in Bavaria to Discuss the Abuses of the European Patent Office Later Today

    The EPO shambles in Munich have gotten the attention of more Bavarian politicians, more so in light of the Constitutional complaint against the UPC (now dealt with by the German FCC, which saw merit in the complaint)

  23. Links 12/3/2018: Linux 4.16 RC5, KEXI 3.1, Karton 1.0, Netrunner 18.03, Debian 9.4

    Links for the day

  24. EPO Patent 'Growth' Not Achieved But Demanded/Mandated by Battistelli, by Lowering Quality of Patents/Services

    Targets at the EPO are not actually reached but are being imposed by overzealous management which dries up all the work in a hurry in order to make examiners redundant and many European Patents worthless

  25. Doubt Over Independence of Judges at the EPO Clouds Reason in Deciding Regarding Patents on Life

    With the growing prospect of a Board of Appeal (BoA) having to decide on patentability of CRISPR 'innovation' (more like explanation/discovery), questions linger or persist about judges' ability to rule as they see fit rather than what some lunatic wants

  26. Patent Academics and CAFC Make a Living Out of Patents, But Both Must Begrudgingly Learn to Accept That Patents Went Too Far

    A look at academic pundits' views on the patent system of the United States and where the Federal Circuit (a high patent court) stands on these matters after the US Supreme Court (highest possible court) lashed out at many of its decisions, especially those from the disgraced Rader years

  27. Patent Maximalists Cause a Crisis of Legitimacy for Patent Law

    The patent extremists who nowadays equate monopolies on mere ideas to "property" and "rights" gradually cause the public to lose respect for patents, more or less in the same way copyright maximalists (and copyright trolls) cause the population to seek alternatives (both legal and illegal)

  28. We Shall Soon Find Out Where Trump Appointees Such as Neil Gorsuch Stand on Patent Policies

    Staff shuffles at top-level roles will soon reveal what Donald Trump's changes mean to patent law and caselaw

  29. Trump's USPTO Changes Patent Designs, Changes Director/Deputy Director, and Anticipat 'Ranks' Patent Examiners Based on How They Deal With Section 101

    Today's USPTO isn't the same USPTO which was managed by Michelle Lee and anti-PTAB groups (proponents of software patents) have begun profiling examiners based on their stance on abstract/software patents -- a form of neo-McCarthyism

  30. Links 10/3/2018: Amarok 2.9.0, Debian 9.4, Sparky 5.3

    Links for the day


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


Recent Posts