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

Microsoft Trots Out Its Propaganda Agent Preston Gralla to Make It Sound Like Microsoft Breaks Up With China (Reality: Microsoft Got Dumped by China)
This discredits any publisher that plays along
SLAPP Censorship - Part 161 Out of 200: Low Standards in Defamation Cases Just Muddy the Waters and Distract From Legitimate Cases
The judge at the trial said that Garrett's case was a waste of the court's money
 
How Many Web Requests From "Linux"...
If one was to assert that "Linux == Android" or "Android == Linux" (it's not that simple), then "Linux" already accounts for about 30% of Web requests
An Explainer About Injunctions Done Wrong - Part I - Saving Money Where Money Cannot be Saved
Of course Garrett not being able to afford his own case is a key factor here
Links 25/08/2026: "U.S. Marines Cancel Drill With South Korea", "UK Prime Minister Burnham Arrives in Ukraine"
Links for the day
Not for the First Time This Week, Site Called "It's FOSS" is Promoting Software That is NOT FOSS (And It Knows It)
Is this an editorial choice? Advertising? What is it?
Gemini Links 25/08/2026: Geometry and FidoNet History, "Goodbye I2P and Yggdrasil, Welcome Telnet!"
Links for the day
Links 25/08/2026: Microsoft Salaries Leaked Again, "Oasis Photograph Sparks Copyright Lawsuit"
Links for the day
GNU/Linux Did Not Start in 1991 and America Wasn't Discovered by Europeans
it'll be 43 next month
Rolling Out Some Changes Soon
To the regular reader no change will be seen
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, August 24, 2026
IRC logs for Monday, August 24, 2026
Gemini Links 25/08/2026: Separated by Plexiglass, Low-Tech Information Networks, Jörg Rippel Comes to Geminispace
Links for the day
The Tragedy of Software Developers Making Up Narratives and Making Excuses for Plagiarism (of Their Own Work, Too)
one lingering issue is that many who vote in Debian GRs receive money from slop companies
Evri Makes Us Optimistic About the Collapse of the Slop Pyramid Scheme (Bubble)
Do not be seduced by false promises of "automation" or "intelligence" where only automation may exist but no intelligence at all
Congrats to Linux.org for Adopting or Getting Back to IRC
This is the way the Net ought to work and was originally designed to work [...] IRC as a protocol turns 38 this month
Links 24/08/2026: "Journalism Can Help Expose Bad Science And Trigger Real-World Change"; Further Suppression and Censorship in China/HK
Links for the day
Gemini Links 24/08/2026: Soul Mentality, Words to Live by, Mozz.us Gemlog Resumes, Smol Conversations
Links for the day
Today The Register MS Published Greenwashing Spam for the Slop Pyramid Scheme, It Mentions "AI" 29 Times
More people need to talk about the role of the media in this pyramid scheme
Slop Plagiarism and Chatbots Are Killing Evri (They Infuriate and Insult Clients)
Slop destroys companies and leads to misery (miserable clients, time-wasting)
Links 24/08/2026: Re-defining the IndieWeb and "Data Center Backlash Bursts Into the Midterms"
Links for the day
The Issue With Omarchy is the Slop, the Politics Are a Side Issue
Those corporations do not oppose slop, they participate in it
In South Korea, Steady Increases for GNU/Linux
authorities said they would migrate to GNU/Linux or consider moving in that direction
SLAPP Censorship - Part 160 Out of 200: In Astounding Repetition of Last Year, Brett Wilson LLP Deliberately Ignores Holidays of People It is Attacking and Crushes Principles of Access to Justice
Disconnected from the law
Links 24/08/2026: Vision and Skill, Doing Good, Chiperia Project
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, August 23, 2026
IRC logs for Sunday, August 23, 2026
Gemini Links 23/08/2026: Turning 60, PineTime, and Simulation Hypothesis
Links for the day
Will Your "Modern" New Car Still be on the Road in 2060?
Are people now expected to change a car as often as they replace a mobile phone and, if so, how fast would costs add up?
The Sniff Test
Be sceptical of "CoCs"
Cloudflare Sees a Quarter of Requests in China Coming From GNU/Linux Today
Will 23% ever be the average for GNU/Linux rather than a mere peak?
You Can Lose Some Battles and Still Win the War
Winning or losing isn't something for a scoreboard
GNU/Linux Usage Measured at 23% in Russia Today
the average was almost 10%
Things Not to Fear Missing Out on
Life is too short to pay attention to social control media
Gemini Links 23/08/2026: Exercising Again, Tackling Phone Addiction, and Putting Graal Online Back Online
Links for the day
Northern Africa: GNU/Linux Measured at Around 5%
by Clownflare
PIPs and Lawsuits: On the Future of IBM Trying to Spit Out Its Own Staff at Minimal Cost
"I'd rather be laid off than be put on a PIP"
France: GNU/Linux Averaging at 7%, Peaked at 14% Today
When will 14% be the average?
Links 23/08/2026: Water Crises, Illegal Tariffs, and Carney Confronts US Over Patent Imperialism
Links for the day
Links 23/08/2026: Slop "Children's Stories Contain Bizarre Patterns" and "Butterflies at the One Garden"
Links for the day
SLAPP Censorship - Part 159 Out of 200: Telling Courts False Information and Spoon-feeding Them Insults, Hoping or Expecting Them to Repeat These Insults
When lawyers trick courts into repeating something false
Microsoft is in Double Trouble in Singapore
Android+GNU/Linux+ChromeOS are near 20%
The Slop Industry Bribed the Media to Pretend It Has Something New and Revolutionary. Now It Bribes Politicians Too. Anything to Avoid Scrutiny and Regulation.
borrowed money has long been used to bribe the media
"AGI" is Decades Old and It Never Found a Viable Business Model or Real, Actually Useful Use Cases
I keep reminding people of local firms (right here in Manchester) doing the same thing the media now calls "AGI"...
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, August 22, 2026
IRC logs for Saturday, August 22, 2026
Microsoft to Its Workers in April-May: You're Too Old, Go Away. Microsoft in August: Young People, Go Away.
What does this company even sell anymore?
Clownflare Data US-Centric
We are assuming that for national security reasons not many sites in Chinese (or based in China) outsource their traffic to Clownflare
Gemini Links 22/08/2026: Broken Car, Devuan, and Thundermail
Links for the day