Microsoft to announce major layoffs; Nokia, Xbox divisions effected

[Rafy]

 

Microsoft Corp. (MSFT) is planning its biggest round of job cuts in five years, as the software maker looks to slim down and integrate Nokia Oyj’s handset unit, people with knowledge of the company’s plans said.

The reductions -- which may be unveiled as soon as this week -- will probably be in areas such as Nokia and divisions of Microsoft that overlap with that business, as well as marketing and engineering, said the people, who asked not to be identified because the plans aren’t public. The restructuring may end up being the biggest in Microsoft history, topping the 5,800 jobs cut in 2009, two of the people said. Some details are still being worked out, two of the people said.

 

 

Some of the job cuts will be in marketing departments for businesses such as the global Xbox team, said the people. The European Xbox team is based in Reading, U.K.

The company had 127,104 employees as of June 5, after adding about 30,000 in its acquisition of Nokia’s handset unit.

http://www.bloomberg.com/news/2014-0...this-week.html

 

Damn, it looks like a hell of a lot of people are being let go, so sad ...

[kuddlesworth9419]

This is their way of making the company more efficient. There is no point in employing people that don't do any work so in other words Microsoft is probably going to cut back on the hardware they make. These people though will likely find jobs fairly easily. Especially if they have had work working with Microsoft. But what do I know, I'm just some guy on the internet. 

[Misanthrope]

The Nokia thing yeah, that was written on the wall already. But the xbox division? Ouch. Now the console is already developed and released so wouldn't this affect just the stupid PR talking heads that have so far been digging deeper and deeper? One can only hope.

[Rafy]

This is their way of making the company more efficient. There is no point in employing people that don't do any work so in other words Microsoft is probably going to cut back on the hardware they make. These people though will likely find jobs fairly easily. Especially if they have had work working with Microsoft. But what do I know, I'm just some guy on the internet. 

 

I agree with the efficiency part but I disagree with what you said about the people not doing any work. Microsoft right now is need of engineers but they are about to fire a whole bunch, so that doesn't really make sense until you look at the strategies of other companies like Cisco. Apparently Engineering and Manufacturing from India and China are far cheaper, less liability, and easier to work with. Both MSFT and Cisco have already outsourced their R&D a long time ago.

That plus expect a metric crap ton of H-1Bs to be issued.

[GhostWindGamer]

Well that's unexpected

[Imabigmac]

This is their way of making the company more efficient. There is no point in employing people that don't do any work so in other words Microsoft is probably going to cut back on the hardware they make. These people though will likely find jobs fairly easily. Especially if they have had work working with Microsoft. But what do I know, I'm just some guy on the internet.

My thoughts exactly.

People and probably because of similar past events and media presentation, seem to think that if a company is laying workers off they are truly going down hill and will end up in the dumpster within 2 years. How many people does it take to figure out where the volume controls should be?

[kuddlesworth9419]

I agree with the efficiency part but I disagree with what you said about the people not doing any work. Microsoft right now is need of engineers but they are about to fire a whole bunch, so that doesn't really make sense until you look at the strategies of other companies like Cisco. Apparently Engineering and Manufacturing from India and China are far cheaper, less liability, and easier to work with. Both MSFT and Cisco have already outsourced their R&D a long time ago.

That plus expect a metric crap ton of H-1Bs to be issued.

Cutting R&D is never a good idea for a tech company. Just look what has happened to Apple. They have virtually no R&D because they get everyone to do it for them.

[Imabigmac]

I agree with the efficiency part but I disagree with what you said about the people not doing any work. Microsoft right now is need of engineers but they are about to fire a whole bunch, so that doesn't really make sense until you look at the strategies of other companies like Cisco. Apparently Engineering and Manufacturing from India and China are far cheaper, less liability, and easier to work with. Both MSFT and Cisco have already outsourced their R&D a long time ago.

That plus expect a metric crap ton of H-1Bs to be issued.

Not every engineer is a good one or the "right" one. I'm break is easier to work with some foreign egg infers as they probably don't think they are the best in world and don't think that all their work is the best and worth it's weight in gold.

[Rafy]

Cutting R&D is never a good idea for a tech company. Just look what has happened to Apple. They have virtually no R&D because they get everyone to do it for them.

Cutting is different from outsourcing. Apple did a completely different thing than MSFT. The new Surface 3 is product of that outsourced R&D if I am not mistaken.

[mr moose]

just because they are rumored to be laying off now doesn't mean anything for R+D or hardware production.  No point in trying to read into it to deeply until there is something to read into.

[totjup5]

Any sign that Microsoft is putting less focus on the Xbox division is good news to me.

[kuddlesworth9419]

My thoughts exactly.

People and probably because of similar past events and media presentation, seem to think that if a company is laying workers off they are truly going down hill and will end up in the dumpster within 2 years. How many people does it take to figure out where the volume controls should be?

Well I do think Microsoft is on the downhill but it's a very shallow downhill. It gives Microsoft a long time to actually go bankrupt because they have so many assets available to them it would take 10+ years for them to actually struggle.

[mr moose]

Well I do think Microsoft is on the downhill but it's a very shallow downhill. It gives Microsoft a long time to actually go bankrupt because they have so many assets available to them it would take 10+ years for them to actually struggle.

 

It's interesting you think that when some economists are predicting the exact opposite.

 

 

http://money.cnn.com/2013/10/18/investing/microsoft-apple/

[kuddlesworth9419]

It's interesting you think that when some economists are predicting the exact opposite.

 

 

http://money.cnn.com/2013/10/18/investing/microsoft-apple/

Do people actually buy the surface. Because their first tablet sold terribly. 

[mr moose]

Do people actually buy the surface. Because their first tablet sold terribly. 

yep, in fact surface is selling like hotcakes and is the main growth in their devices division.

 

http://www.microsoft.com/Investor/EarningsAndFinancials/Earnings/SegmentResults/S2/FY14/Q1/Performance.aspx

[kuddlesworth9419]

yep, in fact surface is selling like hotcakes and is the main growth in their devices division.

 

http://www.microsoft.com/Investor/EarningsAndFinancials/Earnings/SegmentResults/S2/FY14/Q1/Performance.aspx

I didn't know that. The first surface didn't sell very well i do know that.

[exyia]

30,000 in Nokia's handset unit? jeez....that's a ton of people wasting money

[LePawel]

affected*

[AnnoyedShelf]

*affected

[IPCharger]

Cutting R&D is never a good idea for a tech company. Just look what has happened to Apple. They have virtually no R&D because they get everyone to do it for them.

Let's get serious here. How much R&D could you really need for a platform that has the same hardware for 8 years (Xbox division).

[RexinOridle]

Oh noooooo. If no Xbox, then who are we gonna rip on?

[Xorbot]

Oh noooooo. If no Xbox, then who are we gonna rip on?

 

Mac OS X gaming.

[kuddlesworth9419]

Let's get serious here. How much R&D could you really need for a platform that has the same hardware for 8 years (Xbox division).

Well none. At all. So what you are trying to say is that after building the XBone they lay off all their staff. I guess that makes sense but it also suggests that Microsoft isn't going to me making a new console for a while which is terrible because the so called next-gen consoles aren't really all that powerful. 

[tharvey]

The people in charge of making decisions about the hardware in the Xbox one should be fired..  They really dropped the ball this time around.

[IPCharger]

Well none. At all. So what you are trying to say is that after building the XBone they lay off all their staff. I guess that makes sense but it also suggests that Microsoft isn't going to me making a new console for a while which is terrible because the so called next-gen consoles aren't really all that powerful.

When a 4 year old GPU (GTX 480) has more power than your console you're doing something wrong.