Microsoft Cutting 7800 jobs from its Hardware division

[asim1999]

 

It has been revealed that Microsoft is following up its Nokia acquisition with another round of job cuts. Around a year ago, Microsoft initially announced that it would be letting go of 18,000 people after it was set to take on Nokia’s mobile division and now this year, it is going to cut a further 7,800 jobs in its hardware division as the company prepares to shake up its mobile business.

It was revealed a few weeks back that former Nokia CEO, Stephen Elop would be leaving Microsoft although at the time we did not know why. Most of the job losses will take place in the mobile side of Microsoft’s business, the company is also writing off $7.6 billion related to the Nokia acquisition.

In a memo sent to Microsoft employees from CEO, Satya Nadella, he said: “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. In the near-term, we’ll run a more effective and focused phone portfolio while retaining capability for long-term reinvention in mobility”. The Verge has the full memo up if you wish to read the entire thing.

We don’t know exactly what this means for future Microsoft Windows devices but we do know that the company was planning at least two high-end Lumia phones to launch alongside Wind

I think this may be a sign that Microsoft is ready to buy AMD

Source: http://www.kitguru.net/channel/generaltech/matthew-wilson/microsoft-is-cutting-7800-jobs-from-its-hardware-division/

[MageTank]

I think this may be a sign that Microsoft is ready to buy AMD

 

 

[Bingbing10]

AMD need Microsoft to buy them out , well or Samsung 

[Aytex]

I think this may be a sign that Microsoft is ready to buy AMD

[patrickjp93]

No, this is just them getting ready to work with Intel on those fully custom Skylake Xeons for 2016/2017. The software developers know what they need. Microsoft needs only to depend on Intel's expertise at that point. The only hardware experts remaining will be those pertinent to driver creation for the Windows OS.

[Alurit]

if op's suspicion is true but I doubt it then if they could just manage to make amd apu's into mobile they would be huge, since intel is basically taking over the tablet space with atom, and started to creep into mobile phones as well, desktop/laptop sales have been on a steep downfall for a long time, since all you need now is a tablet for relatively large screen browsing. with a massive r&d budget amd apu's in mobile could even endanger the nvidia tegra line.

[MageTank]

AMD need Microsoft to buy them out , well or Samsung 

No, they don't. AMD does not need ANYONE to buy them out. They need Zen to make a splash to become competitive again, or sell ATI to the highest bidder to get rid of the debt ATI brought with them. A buyout will not happen until Zen makes its presence in the market, and AMD can see first hand if it will be enough to get them out of this funk they are in, or if its time to make drastic decisions. Selling right now makes absolutely no sense. Besides, if anyone bothered to read the article, most of the cuts were done in the mobile department. Firing a ton of your mobile hardware engineers only to replace them with AMD engineers would make little sense. They can already get Adreno graphics if they wanted them. Not only that, advancement in mobile software is just as slow as desktop advancement. Nvidia has tried with all of their might to make ARM a thing, and its still slow. I owned the Nvidia Shield Portable, and to this day, there is no game that i can play that most devices can't already play with far inferior hardware.

 

 

No, this is just them getting ready to work with Intel on those fully custom Skylake Xeons for 2016/2017. The software developers know what they need. Microsoft needs only to depend on Intel's expertise at that point. The only hardware experts remaining will be those pertinent to driver creation for the Windows OS.

 

I don't see why they would fire their mobile engineers for "Skylake Xeons". Good luck putting one of those in a mobile device.

[patrickjp93]

No, they don't. AMD does not need ANYONE to buy them out. They need Zen to make a splash to become competitive again, or sell ATI to the highest bidder to get rid of the debt ATI brought with them. A buyout will not happen until Zen makes its presence in the market, and AMD can see first hand if it will be enough to get them out of this funk they are in, or if its time to make drastic decisions. Selling right now makes absolutely no sense. Besides, if anyone bothered to read the article, most of the cuts were done in the mobile department. Firing a ton of your mobile hardware engineers only to replace them with AMD engineers would make little sense. They can already get Adreno graphics if they wanted them. Not only that, advancement in mobile software is just as slow as desktop advancement. Nvidia has tried with all of their might to make ARM a thing, and its still slow. I owned the Nvidia Shield Portable, and to this day, there is no game that i can play that most devices can't already play with far inferior hardware.

 

 

 

I don't see why they would fire their mobile engineers for "Skylake Xeons". Good luck putting one of those in a mobile device.

You do know mobile workstations with Xeons exist, right? But this is across their hardware division. They don't need to make any more prototype tablets or 2-in-1s. Everyone knows what they will look like. Let Intel deal with wireless charging and WiGig and all that. Also, Microsoft has a huge server business where most of these cuts came from.

[MageTank]

You do know mobile workstations with Xeons exist, right? But this is across their hardware division. They don't need to make any more prototype tablets or 2-in-1s. Everyone knows what they will look like. Let Intel deal with wireless charging and WiGig and all that. Also, Microsoft has a huge server business where most of these cuts came from.

 

 

 

Microsoft CEO Satya Nadella didn't waste any time dropping the company's previous focus on "devices and services" after he was appointed as chief executive last year. In recent weeks former Nokia CEO Stephen Elop has departed Microsoft, alongside the company's head of phones Jo Harlow. Nadella warned of "tough choices in areas where things are not working," and it appears we're seeing the first major signs of that today. Microsoft is cutting 7,800 jobs primarily in its phone business, and the company is writing off $7.6 billion related to its acquisition of the Nokia phone business. That's more than the $7.2 billion Microsoft paid for Nokia's phone business last year.

 

http://www.theverge.com/2015/7/8/8910999/microsoft-job-cuts-2015-nokia-write-off

 

Nowhere do i see a huge cut from the server business. It mostly looks like they are trimming the fat from their mobile phone departments. I do not see how working with Intel Xeon's would cause this, or make MS's mobile situation any more effective (or less, for that matter) than what it already is.

[GoodBytes]

Hmm no. it's the old Nokia division that gets the cut.

Microsoft is not interested in making phone. They'll be like the Surface line, meaning they'll probably have a low end (which is very successful), medium end, and high-end model... and allow more other phone manufactures to take the market.

Right now, there is no phone manufactures interested in making a Windows Phone, because Microsoft controls everything, and the market share is insufficient for manufactures to justify R&D to make original content. Now, they can make Windows Phone version of their Android versions phones. Microsoft biggest problem is pleasing service providers in North America and Europe. They don't know how to deal with them (as it seams), but HTC, Samsung, Motorola, etc. knows how to.

Right now, Microsoft interest on what it got from Nokia, was the patents, know how on how to make a phones, including manufacturing it, and how to distribute it. You don't need 7800 employees for this, as the R&D is already done.

[deviant88]

What he said.

No chance of buying AMD.They even wanted to get rid of Xbox division, there was a rumour last year.

And its sad for all those people, those are a lot of employees.

[Norman_the_Owl]

Hardware?

 

 

Welp, there goes my high hopes for the surface pro 4

[RH00D]

Hardware?

 

 

Welp, there goes my high hopes for the surface pro 4

 

Its not really a big deal. This is mostly in the Nokia hardware division they purchased. Now, they are still going to be making Lumia phones, they just won't have 18 different SKUs anymore. They want to make it a lot more lean and focused.

 

It wasn't mentioned in the OP or article but they are still very committed to first-party hardware including Surface line and phones. (Surface is actually profitable now.)

 

From Satya's email:

 

"I am committed to our first-party devices including phones. However, we need to focus our phone efforts in the near term while driving reinvention. We are moving from a strategy to grow a standalone phone business to a strategy to grow and create a vibrant Windows ecosystem that includes our first-party device family.

 

In the near term, we will run a more effective phone portfolio, with better products and speed to market given the recently formed Windows and Devices Group. We plan to narrow our focus to three customer segments where we can make unique contributions and where we can differentiate through the combination of our hardware and software. We’ll bring business customers the best management, security and productivity experiences they need; value phone buyers the communications services they want; and Windows fans the flagship devices they’ll love."

 

The part I like about that is the flagship statement. Windows Mobile really needs a flagship phone especially with Windows 10 Mobile rumored to be released in September.

[GoodBytes]

Welp, there goes my high hopes for the surface pro 4

Nokia, not Surface. Surface have been selling well, and I see no sign for Microsoft to do anything but expand.

[Norman_the_Owl]

Nokia, not Surface. Surface have been selling well, and I see no sign for Microsoft to do anything but expand.

>surface have been selling well

I know this is off topic, but damn, they would sell so much better if they weren't so OBSCENELY EXPENSIVE

Jesus

 

/rant

[dalekphalm]

I think this may be a sign that Microsoft is ready to buy AMD

Source: http://www.kitguru.net/channel/generaltech/matthew-wilson/microsoft-is-cutting-7800-jobs-from-its-hardware-division/

Err... what does Microsoft laying off a bunch of phone hardware engineers have anything remotely to do with AMD? Nothing? That's what I thought.

 

 

>surface have been selling well

I know this is off topic, but damn, they would sell so much better if they weren't so OBSCENELY EXPENSIVE

Jesus

 

/rant

Surface Pro series are not obscenely expensive at all. Are you comparing them to the right competitor, instead of a piece of shit $400 atom powered tablet with 3 hours of battery life?

[Norman_the_Owl]

Err... what does Microsoft laying off a bunch of phone hardware engineers have anything remotely to do with AMD? Nothing? That's what I thought.

 

 

Surface Pro series are not obscenely expensive at all. Are you comparing them to the right competitor, instead of a piece of shit $400 atom powered tablet with 3 hours of battery life?

I'll answer the question in the first part too

 

My assumption when i read that post was he meant they were getting rid of people to make room for new people. They said "We can only spend so much on salaries" and trimmed the fat in order to make room? IDK, it's all assumption

 

As for the second part, i meant in comparison to other "high power" ultrabooks.

It's 1550 dollars for a 4510u and a 256GB SSD, not including the type cover.

 

It's 1300 dollars for an HP Spectre X360 with a 5500u and a 256GB SSD, including keyboard. It's important to note, the X360 supports synaptics stylus', the same type as the Surface Pro 3 IIRC

 

You're paying 350 extra bucks for what, a removable keyboard and a unique (4:3 or something) form factor? Because lets be honest, it's still really not light enough to hold in the hand and take notes on it

[dalekphalm]

I'll answer the question in the first part too

 

My assumption when i read that post was he meant they were getting rid of people to make room for new people. They said "We can only spend so much on salaries" and trimmed the fat in order to make room? IDK, it's all assumption

 

As for the second part, i meant in comparison to other "high power" ultrabooks.

It's 1550 dollars for a 4510u and a 256GB SSD, not including the type cover.

 

It's 1300 dollars for an HP Spectre X360 with a 5500u and a 256GB SSD, including keyboard. It's important to note, the X360 supports synaptics stylus', the same type as the Surface Pro 3 IIRC

 

You're paying 350 extra bucks for what, a removable keyboard and a unique (4:3 or something) form factor? Because lets be honest, it's still really not light enough to hold in the hand and take notes on it

Does the HP include the stylus in the purchase price? Because the Surface Pro does - and it's a nice one. So that helps offset the additional cost.

 

Also, I haven't used the Spectre - what is the casing like? Cheap plastic or does it feel premium? I'd have to do a full comparison of all factors with each device to say if the HP is a better deal or not - battery life, screen resolution, ports included, etc.

[GoodBytes]

>surface have been selling well

I know this is off topic, but damn, they would sell so much better if they weren't so OBSCENELY EXPENSIVE

Jesus

 

/rant

There is a premium price to pay with the device, mostly its official accessories, which means the keyboard. But, all in all it is floating around the price premium of Apple tax. Microsoft can do this, as they are the only one. Much like Nvidia and its Titan series, or one could argue the Ti series of late. The company charges a premium price for being 'the best in class', if you want to call it that.

But it isn't that much, for the case of Microsoft. Maybe $150-$200 more.

If you compare to other devices, you can see you have a lot for your money.

The biggest challenge for the Surface line, currently, is showing the benefits of the digitize pen. The only core issue the device has, is the paint body, which scratches easily, even on a table, because magnesium can't be dyed in some fashion with great results. So, it is painted. Aluminum is the solution, but it is heavier, and the last thing the Surface needs is to be heavier.

[Norman_the_Owl]

Does the HP include the stylus in the purchase price? Because the Surface Pro does - and it's a nice one. So that helps offset the additional cost.

 

Also, I haven't used the Spectre - what is the casing like? Cheap plastic or does it feel premium? I'd have to do a full comparison of all factors with each device to say if the HP is a better deal or not - battery life, screen resolution, ports included, etc.

The casing is milled aluminum, IIRC it's got a sort of anodized feeling on the palm rest. It's really just a full featured touchscreen laptop, but with a 360 hinge, and synaptics pen support. 

 

Is the SP3 pen included? They have them listed as an accessory alongside the keyboard

 

There is a premium price to pay with the device, mostly its official accessories, which means the keyboard. But, all in all it is floating around the price premium of Apple tax. Microsoft can do this, as they are the only one. Much like Nvidia and its Titan series, or one could argue the Ti series of late. The company charges a premium price for being 'the best in class', if you want to call it that.

But it isn't that much, for the case of Microsoft. Maybe $150-$200 more.

If you compare to other devices, you can see you have a lot for your money.

The biggest challenge for the Surface line, currently, is showing the benefits of the digitize pen. The only core issue the device has, is the paint body, which scratches easily, even on a table, because magnesium can't be dyed in some fashion with great results. So, it is painted. Aluminum is the solution, but it is heavier, and the last thing the Surface needs is to be heavier.

Yea, i agree that it's fair to charge extra, but it's a lot extra. Compared to similar more laptop like convertibles, it's 300ish dollars more expensive (when you include the type cover, of course)

 

And yea, the challenge is definitely the pen. It's honestly only really useful for artsy people who don't want to use a drawing tablet. Or for people who can't type well, but that's much more niche.

And for the paint, i don't see why they stick with magnesium through all these years if it's giving them such issues...

[dalekphalm]

The casing is milled aluminum, IIRC it's got a sort of anodized feeling on the palm rest. It's really just a full featured touchscreen laptop, but with a 360 hinge, and synaptics pen support. 

 

Is the SP3 pen included? They have them listed as an accessory alongside the keyboard

 

Yea, i agree that it's fair to charge extra, but it's a lot extra. Compared to similar more laptop like convertibles, it's 300ish dollars more expensive (when you include the type cover, of course)

 

And yea, the challenge is definitely the pen. It's honestly only really useful for artsy people who don't want to use a drawing tablet. Or for people who can't type well, but that's much more niche.

And for the paint, i don't see why they stick with magnesium through all these years if it's giving them such issues...

Interesting. HP's high end devices have almost always been pretty fucking sweet. It's nice to see them get some recognition for it. Most people just see HP, and think "ugh that shitty $300 laptop I bought was shitty! So this $1500 one must be too!"

 

I can, however, confirm that the pen IS included. We got our CEO a Surface Pro 3.

[Norman_the_Owl]

Interesting. HP's high end devices have almost always been pretty fucking sweet. It's nice to see them get some recognition for it. Most people just see HP, and think "ugh that shitty $300 laptop I bought was shitty! So this $1500 one must be too!"

 

I can, however, confirm that the pen IS included. We got our CEO a Surface Pro 3.

I thought it was included,i just couldn't remember.

And yea, HP is getting better. Their high-end stuff has always ranged from decent to great, but their low end stuff was pure crap. I use to own an HP laptop with an AMD APU and 2 gigabytes of ram, and even though it lasted a long time, it was just crap. The screen connector ended up burning out eventually, and we just replaced it.

[NinerL]

The fall of Microsoft is near, we'll just have to wait for Windows 10, Surface, and their Lumia lines to flop and then we shall rejoice.

[dalekphalm]

The fall of Microsoft is near, we'll just have to wait for Windows 10, Surface, and their Lumia lines to flop and then we shall rejoice.

Do you have any source to back that up?

 

Microsoft is just culling the NOKIA staff that came over with that buyout. They have no need of 7000+ Mobile Device engineers.

 

Besides, Microsoft has so much money that they could literally stop selling all products, and continue to operate for for like 10 years while paying all staff.

 

I do not envision Microsoft "dying", or even "shrinking", anytime soon. All evidence points towards Microsoft growing even bigger.

[atrash]

Do you have any source to back that up?

 

Microsoft is just culling the NOKIA staff that came over with that buyout. They have no need of 7000+ Mobile Device engineers.

 

Besides, Microsoft has so much money that they could literally stop selling all products, and continue to operate for for like 10 years while paying all staff.

 

I do not envision Microsoft "dying", or even "shrinking", anytime soon. All evidence points towards Microsoft growing even bigger.

 

You just took the bait,mate..