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

03.01.09

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

    Gravatar

    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. Linux Foundation's Linux.com in 2019: Zero Articles (Nothing Original) and a Terrible, Rookie New Design

    Linux.com has become a curated syndicator of news (edited by one single Microsoft proponent); the site has also eliminated its traditional design in favour of something only 'hipsters' can appreciate



  2. Managing IP as Team UPC's Megaphone and Lobbying Front

    Managing IP is lying on behalf of Team UPC yet again; the site's long history promoting the UPC hasn't ended even when prospects of the UPC are slim to none



  3. No More Rights for EPO Staff?

    The oppression and the crackdown on labour rights in Europe's second-largest institution has deepened to the point where staff is paid as little as is legally possible



  4. Links 22/8/2019: GNOME 3.33.91, Systemd 243 RC2, Cockpit 201, Ubuntu Touch OTA-10, FreeIPMI 1.6.4

    Links for the day



  5. Some Patent Attorneys Dislike Techrights Not Because It's Wrong But Because Software Patents Are Wrong (and Sometimes Illegal)

    Odd rants which misuse common law and ignore alleged Fair Use (and misinterpretation of copyright law, for censorship purposes) would have people believe that we're wrong; but it's more likely that the person in question is jealous, insecure, or offended by our stance on patent scope, which is very much rooted in the law itself (and the views widely held by software developers globally)



  6. Guarding and Rescuing the FSF Titanic: Distro-libre and feature-schema

    "Every time a distro does not suit a user's purposes, and it is less work to adapt the distro on one's own than to affect the distro in any other way, a distro is born."



  7. Links 21/8/2019: Dell's XPS 13, Mesa 19.2 RC1, Librem Update

    Links for the day



  8. Links 21/8/2019: Open Source POWER, Alpine 3.10.2, Netrunner 19.08

    Links for the day



  9. Edward as a Nodder to Team UPC Kool-Aid

    Bristows LLP is at it again and it's getting pathetic, not just dishonest as usual



  10. Guest Post: António Campinos' European Patent Office Redefines Modern Slavery in the Heart of Europe in 2019

    The European Patent Office’s (EPO) President António Campinos — like his predecessor Battistelli — emulates Chinese labour practices



  11. Guarding and Rescuing the FSF Titanic: There is More Than One Iceberg Ahead

    "This strategy is not far from when Microsoft talked about "de-commoditizing protocols" in the late 90s, as part of their plans to control, dominate, and end Open Source and Free software."



  12. EPO Cannot Handle Patent Justice With a Backlog of About 10,000 Cases at the Boards of Appeal

    The EPO's long war on judges and on the law has proven to be costly; it's difficult to pretend that the EPO functions like a first-world legal framework



  13. The European Patent Office Increases Surveillance: Can't Get Food Without Being Spied on

    The infamous "War on Cash" has been 'won' at Europe's second-largest institution, where people's diet can now be monitored and indefinitely retained on the system



  14. To GNU/Linux, the Operating System, GAFAM (Google, Apple, Facebook, Amazon, Microsoft) is Not the Threat. Microsoft is.

    Don't let Microsoft get away with its bogus narration; GNU/Linux is primarily under attack from Microsoft, whereas Software Freedom in general is under attack from many directions



  15. The Free Software Foundation (FSF) Has the Full Support of Techrights

    Our support for the FSF is strong enough that we want to occasionally suggest improvements; there are growing frictions designed to isolate the FSF and cause self-restraint/censorship



  16. Why We Support Phoronix (Whereas Some Others Do Not)

    Some people try to characterise Michael Larabel as the 'bad boy' of Linux even though Michael is probably the hardest working Linux journalist out there



  17. Guarding and Rescuing the FSF Titanic: The Simplest Ways that AI will Change Computing

    "AI is already used to help kill people. We should be cautious, and know that the best rules we come up with (like no doing magic outside the school grounds) won't be followed all the time."



  18. Links 20/8/2019: DragonFlyBSD Developing DSynth

    Links for the day



  19. Guarding and Rescuing the FSF Titanic: Narcissism in The Community

    "Narcissists are drawn to intelligent people. They take great pleasure in attacking, controlling and defeating intelligent people because it makes them feel smarter and more important."



  20. Breaking the Law Has Become the Norm at the European Patent Office

    The European Patent Office’s ongoing practice of destroying critics/whistleblowers and crushing unions, judges, examiners etc. — as well as threats and bribery of the media — ultimately mean a perpetual state of lawlessness that, if it prevails, will let patent trolls raid the European economy and stall innovation



  21. Links 20/8/2019: KMyMoney 5.0.6, Kdenlive 19.08

    Links for the day



  22. Guarding and Rescuing the FSF Titanic: Free Software in Education

    "If everyone learns to code, then everyone gains some understanding of how to code in other languages."



  23. Links 19/8/2019: Another Linux 5.3 RC, OpenSUSE's Richard Brown Steps Down, Slackware Creates Patreon Page, Qt 6 Initiated

    Links for the day



  24. Speaking Truth to Monopolies (or How to Write Guest Posts in Techrights)

    We need to have more articles tackling the passage of all power — especially when it comes to software — to few large monopolies that disregard human rights or actively participate in their abolishment in the digital realm



  25. Guarding and Rescuing the FSF Titanic: Free as in Speech

    "While a new breed of so-called anarchists campaign against expression that even the state allows, people are also foolishly overplaying the relevance of the state to free speech issues -- as if it's not a freedom issue when a project is increasingly thought-policed, because the thought-policing isn't on a state level."



  26. Toxic Culture at Microsoft

    Racism, intolerance, sexism and bullying are rampant at Microsoft; but Microsoft would rather deflect/divert/sidetrack to Google and so-called 'GAFA'



  27. Guarding and Rescuing the FSF Titanic: Introduction

    "The FSF isn't just threatened, it will hit a large iceberg in the future that changes it permanently."



  28. Linux Journal and Linux.com Should Have Been Kept Going

    There's apparently no good explanation for the effective shutdown of Linux Journal and Linux.com; London Trust Media Holdings (LTMH), owner of Linux Journal, saw numbers improving and the Linux Foundation, steward of Linux.com, is loaded with money



  29. 2019 Microsoft Glossary

    How Microsoft internally interprets words that it is saying to the public and to the press



  30. 2019 Surveillance Glossary

    Distortion of technical and nontechnical terms in this day and age of '1984'


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