Bonum Certa Men Certa

Microsoft is Having Financial Problems

Debt and credit



THE TITLE may be a little deceiving because it does not refer directly to Microsoft's financial difficulties*, which are becoming more of a common knowledge. It's actually about indicators of Microsoft scrambling for cash that it may never receive or recover anyway because other people's coffers run dry(er).

In the following article from Gamasutra, Steve Ballmer is quoted as saying -- although not in these words -- that he is concerned about the impact of the meltdown. This follows some of the things he said last year about the company needing the bailout, which he personally lobbied for recently. They are in serious trouble and they are fully aware of it.

The company recently revealed declining profits in the fourth quarter of 2008, and announced a plan to cut 5,000 jobs as a result.


Another money-grabbing reflex from Microsoft is an attack against distributors whom it used to depend on (and maybe still does, especially now). Based on the news, those pursuits generally continue and they involve not only Microsoft software.

A 24-year-old Texas man has been sentenced to 41 months in prison for selling counterfeit software on about 40 Web sites, the U.S. Department of Justice said.


Overall, this works in favour of Free software.

Perhaps the best example of Microsoft's scramble for cash is this bunch of ludicrous moves:

Microsoft is trying to get severance money back from some employees it laid off last month.

In letters written to an unspecified number of laid off Microsoft workers, the company says that due to an administrative error the company paid them too much severance.

"... An inadvertent administrative error occurred that resulted in an overpayment in severance pay by Microsoft," the letter states. "We ask that you repay the overpayment and sincerely apologize for any inconvenience to you."


What was going through Microsoft's mind? Is it really expecting to see this cash? CNET calls it a "public relations blunder."

Microsoft says it made an accounting error when it laid off some employees last month and now feels the best way to correct the error is with what will likely add up to a public relations blunder.

The software giant, which recently laid off 1,400 employees, sent letters (see image below) this week to some of those former workers letting them know that their severance payouts were a bit too "generous" and respectfully requested that the former employees pay back that money, according to a report Saturday on TechCrunch.


This is also covered in:

  1. Microsoft wants severance pay back from some fired staff
  2. Oops: Microsoft Asks Some Laid Off Workers To Send Back Part Of Their Severance
  3. Microsoft Asks For a Refund From Laid-Off Workers


Interestingly, while Microsoft implements layoffs that are not sufficient in terms of their scale, the company continues to pursue cheaper labour.

Locally, Microsoft had more than 1,000 H-1B visas approved for 2008, the fifth-highest for any U.S. employer. Others, like the University of Washington, got approval for 104; Seattle Children's Home for one.

[...]

As unemployment spreads, immigration attorneys believe some big employers may be making fewer H-1B hires this year. Microsoft said last week that, in light of economic conditions, "we are constantly evaluating our appropriate staffing levels."


Bloomberg has a widely-cited report covering the issue as well.

As many as 5,000 employees are being shown the door at Microsoft, which uses more H1-B guest-worker visas than any other U.S. company. Some employees and politicians say Microsoft should get rid of foreigners first


This is a subject that we previously covered in:



Microsoft's wealth -- or lack thereof* -- set aside, people who run (or ran) the company have been stashing cash for quite some time and despite bankruptcies, their problems are few. Owing to the so-called 'stimulus', which is a euphemism for "public looting", people like Paul Allen will gain a lot more personal wealth so that their buying spree (things like huge boats) can carry on.

Billionaire Paul Allen is a Microsoft cofounder, the owner of the NFL's Seattle Seahawks and the owner of the NBA's Portland Trailblazers.

[...]

So what will Paul do with that money until 2014? Invest it in technology that reduces our dependence on foreign oil and creates new "green collar" jobs for America, per the goals of Obama's stimulus plan, of course.

Or Paul maybe can buy a new boat. He already owns two, here is one of them


This article contains a self-explanatory picture. There is a famous battle of egos there between Paul Allen of Larry Ellison (over who has the bigger yacht).

Personal wealth is never to be confused with commercial wealth of the companies owned by those people. A recommended multi-part show which comes to mind is titled "The Century of the Self" (video). It explores some issues that are close to the theme here in Boycott Novell. ____ * The company may already be in debt if not very near to it [1, 2, 3, 4, 5].

Comments

Recent Techrights' Posts

Why We Support Richard Stallman and You Probably Should Too
It's not about being "Richard Stallman fan", it is about maintaining the right to hold positions (on technology) like his
Some Large German Media Covers Richard Stallman's Talks in Germany Earlier This Week
LLM-based chatbots are just "bullshit generators" (as he has long called them)
Trouble in Red Hat/IBM and a Retreat to Ponzi Economics in Search of Wall Street Market Heist
Would you invest your life savings in this kind of crap?
Who Asked Software in the Public Interest (SPI) for a Refund? ($100,000, Resulting in Losses of $267,201 in 12 Months, Highest-Ever Losses)
The IRS does not reveal who or what's tied to this refund (or the cause/reason)
 
Links 23/10/2025: LLM 'Hallucinations' (Defects) in Practical Code 'Generation', China Becomes More Economically and Technologically Independent
Links for the day
Linux Foundation Uses LLM Slop to Promote Microsoft in Linux.com (Again), Rendering It a Linux-Hostile Slopfarm
Openwashing with slop by "Linux.com Editorial Staff", which basically seems to be a bot
Links 23/10/2025: Windows TCO Galore and "The Internet Is Going to Break Again"
Links for the day
Social engineering attack: Debian voted to trick you on binary blobs
Reprinted with permission from Daniel Pocock
Techrights Will Always Stand for Women's Rights
We even invest money - personal savings that it - in our principles
Certified Lawyers Should Know Better (Than to Intimidate Us With Man Who Drives on Motorcycle Through a Really Bad Storm Between Distant Cities, Then Collects Photos of Our Home)
Mentioning someone was in prison for bad things isn't a crime, it's a public service
The "AI" (Slop) Bubble is Already Imploding
"ChatGPT Usage Has Peaked and Is Now Declining, New Data Finds"
The So-called "Sexy" Buckets (AI, Quantum) Cannot Save IBM From Reality, Shares Tank
"No matter how much financial hocus-pocus they use to reclassify revenues to land in the "sexy" buckets (AI, Quantum), it still smells old and musty - just like this company."
Paul Krugman is Wrong About the Scope of Mass Layoffs in the United States
A few years ago society was accelerating its journey towards feudalism, boosted by COVID-19
Links 23/10/2025: Proprietary Blunders and CISA's Latest Disclosure of Holes
Links for the day
Gemini Links 23/10/2025: Fast Past (F1), 99.9% Uptime
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, October 22, 2025
IRC logs for Wednesday, October 22, 2025
Slopwatch: Google News is Promoting Fake 'Articles' About Fake Xubuntu, Fake Articles About Replacing Windows With GNU/Linux
The quality of the Web deteriorates and unless someone cleans up the mess, real sites will lose an incentive to produce anything
When "AI Layoffs" Mean Layoffs Due to the "AI" Bubble Popping
many people that are laid off by Microsoft claim to be specialists in "AI"
Mysterious grant forfeited, $100,000 from Software in the Public Interest accounts 2023
Reprinted with permission from Daniel Pocock
Evidence: bullying, student union behaviour: Armijn Hemel's FSFE resignation
Reprinted with permission from Daniel Pocock
Evidence: psychological abuse, stalking, Galia Mancheva, Susanne Eiswirt ignored by FSFE judgment for Matthias Kirschner
Reprinted with permission from Daniel Pocock
Helping FSFE scam victims and conference organisers
Reprinted with permission from Daniel Pocock
Nigerian fraud in FSFE constitution
Reprinted with permission from Daniel Pocock
Worrying and Amusing Stories of "Clown Computing" Gone Awry
Many of these disasters could be avoided
Links 22/10/2025: Amazon Plans to Replace Workers With Robotics, AWS and Clown Computing in General Ridiculed
Links for the day
Gemini Links 22/10/2025: Niri Completely Changes Multitasking and Overview of Diff-ers
Links for the day
Links 22/10/2025: Study on Misinformation by Slop and Heavily Debt-Sabbled Microsoft OpenAI (ClosedSlop) Uses "Browser" as Gimmick/Distraction
Links for the day
They've Already Spent Close to a Million Dollars on Lawyers and Sent Us About 50 KG of Legal Papers (Sponsored by Mysterious Third Party) to Try to Censor Techrights, Without Success
They try to overcompensate with sheer volume for a lack of solid, clear arguments (we are the victims here)
12 Months Ago the 'Hulk Hogan of UEFI' Officially Went 'Tag-Team'
We're actually sort of flattered or proud that such despicable people are so desperate to censor us
"Cloud Computing" Was Always a Joke, But This Week Was the Punchline
Maybe stop following tech trends and fashions
"Cloud Computing" Does Not Mean Safety
Fault tolerance is related to the notion of software freedom
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, October 21, 2025
IRC logs for Tuesday, October 21, 2025
The Fall of Windows: From Something to Nothing
Of course Microsoft will pretend everything is fine and "just trust the hey hi" (AI)
Sounds Like Fedora is Ready to Become Less of a Slave of Microsoft (GitHub)
This seems like a belated move in a positive direction
XBox is a Dead Microsoft Product in a Dying Industry
It's probable that another wave of XBox layoffs is just over the horizon (maybe even before month's end)
Progress on Techrights Site Search
Fun times
IBM's Bluewashing of Red Hat Means the Layoffs Are Silent, Barely Reported
Don't wait to hear about "Red Hat layoffs"
Gemini Links 21/10/2025: Happy Disconnection, AWS Falling Apart, Closing of Gemlog Blue
Links for the day
Full Audio of Today's Richard Stallman Talk in the Technical University of Munich
Free/Libre software and freedom in the digital society
Microsoft XBox is Just Vapourware (Promises of Hardware That Doesn't Exist), Real Products Perish
just as developers lose interest in developing for XBox Microsoft is increasing the costs imposed upon them
Slopwatch: Fake Articles (Slop) in "Linux" Clothing in Google News (Noise)
all about what Google does
Links 21/10/2025: Even "Inventor of Vibe Coding" Rejects Vibe Coding, USPTO Experiments With Slop in Examination
Links for the day
Richard Stallman Talk Now Available for Viewing (Archived Copy, Not Live-streamed)
This recording is over 2 hours old
Links 21/10/2025: AWS-Induced Chaos and Social Control Media Curbs
Links for the day
Gemini Links 21/10/2025: Programming, StarGrid, Brand-New Palm OS Strategy Game in 2025, and Chatbot as Addiction Mechanisms
Links for the day
The African Lion and the American Cowards
Safaris exist for people to watch and enjoy animals
Amazon Web Shenanigans Perfectly Timed for Today's Talk by Richard Stallman
Maybe listen to him instead of looking for excuses to ridicule the messenger
Mission:Libre Has Taken Off (Project by Carmen Maris)
there will be a lot more to report on next month (after the event)
Techrights to Publish More EPO Leaks Next Week
We're meanwhile also doing lots of work on search, whose interface now looks better
Links 21/10/2025: 'The Lost Art' of Neon Signs and Twitter (X) to Enable Identity Theft (or Handle Theft) as a Service
Links for the day
Plagiarism With LLM Slop: Hindustan Times (HT Digital Streams Limited) Has Become a Slop Factory/Hub
What a disgrace
A radical proposal to keep your personal data safe, by Richard Stallman
"The surveillance imposed on us today is worse than in the Soviet Union. We need laws to stop this data being collected in the first place"
Next Week We Launch Search at Techrights
We're planning to launch it some time next week. Maybe Tuesday, maybe Thursday.
Talk by Richard Stallman Will be Live-streamed in Less Than 10 Hours
Happy hacking
"No Kings" in the Software World (GAFAM Should Not Exist, Either)
"No Kings" is a good slogan. Let's start by ridding ourselves of masters, not only those who reside in DC or visit DC
Every Morning
Bugs/edge cases combined with automation can spell disaster
Insane, Deliberately Dishonest, or Just Another Bigot?
very intellectually-dishonest human being
A Lot of Techrights is Built on Perl
Perl also runs the sister site
The Register MS Selling Slop for Microsoft (Vapourware, Ponzi Scheme, False Claims)
What will be left of The Register MS if it keeps repeating falsehoods and looking to profit from Ponzi schemes?
analytics.usa.gov Says Less Than 14% of Web Requests (to Government Sites) Come From Vista 11
Vista 11 was released more than 4 years ago!
People Who Attempt to Take Down Correct Information Need a Doctor a Day
“Journalism is printing something that someone does not want printed. Everything else is public relations.” ― George Orwell
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, October 20, 2025
IRC logs for Monday, October 20, 2025
Vista 11 is Sinking While Microsoft is PIPing (Mass Layoffs But Silent Layoffs)
We're witnessing a shift in platform dominance
Richard Stallman is Having a Good Week Already (Stallman Was Right About 'Clown Computing')
That alone is worth bringing up in his talk
An Update About Soylent News, With Jan Rinok "Back in the Saddle"
Burnout or "near burnout" a possibility when having to curate abuse
When Prominent GNU/Linux Distros Are Run by Spies
What has Microsoft Canonical become?
More Publishers and Companies Nowadays Say "GNU/Linux", Not "Linux"
It's not to see InstallAware saying GNU/Linux this week