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 in other sites/networks: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Reddit
  • email
  • Slashdot

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. Living in a State of Constant and Never-Ending Fear Will Harm Software Freedom

    "Freedom" or "liberty" may seem to have been co-opted by extreme right-wing and COVID-denying (or COVID-minimising) elements, but at the moment we do stand to lose many "tech rights" (in the name of "protecting" us)



  2. [Meme] Mozilla's 2020 Vision

    Mozilla does not seem to understand that proprietary Azure and proprietary GitHub won't offer Mozilla a way/path out of the mess it's in



  3. Techrights Done With Maintenance For Now, Will Resume Posting at a Higher Publication Pace

    With a few new features added to the site we can finally resume normal operations (more articles per day)



  4. Moving to Phones Won't Liberate Users

    A so-called 'phone' (or 'smart' phone) with Linux under the bonnet isn't freedom; it's a branding war being won, but principles are being abandoned



  5. Links 29/10/2020: LibreOffice 7.0.3, Linux 5.9.2, NVIDIA 455.38 Linux Driver

    Links for the day



  6. Links 29/10/2020: Istio 1.6.13, Krita 4.4.1 and PyPI Key-Signing Ceremony

    Links for the day



  7. IRC Proceedings: Wednesday, October 28, 2020

    IRC logs for Wednesday, October 28, 2020



  8. Links 28/10/2020: Linux Dropping WiMAX Support, Istio 1.7.4, Ubuntu is “Hirsute Hippo”

    Links for the day



  9. Linux Foundation (Men for Monopolies) Once Again Hijacking Women's (and Minorities') Voices for Public Relations

    Diversity and tolerance are absolutely essential, but those who preach or lecture us about it most loudly (their financial means or privilege enable media reach) set a bad example and are mostly opportunistic hypocrites who perpetuate the status quo



  10. In a State of Flux Due to Maintenance and Improvements

    For the first time since summer of 2019 we're investing time and effort improving the site in a number of ways



  11. Links 28/10/2020: Torvalds on Succession, PyTorch 1.7.0

    Links for the day



  12. [Meme] Stealing the Competition

    After the fall (and fail) of CodePlex Microsoft decided to grab the Linux Foundation and most Git-based projects (through GitHub) — a strategy even Microsoft can learn to love



  13. IRC Proceedings: Tuesday, October 27, 2020

    IRC logs for Tuesday, October 27, 2020



  14. Links 28/10/2020: FreeBSD 12.2, NixOS 20.09 and WordPress 5.6 Beta 2

    Links for the day



  15. Taking Our Efforts to the Next Level in an Increasingly Proprietary and Hostile Web

    Web users are being repressed by mechanisms of mass manipulation, control and restrictions; the Web may not be going away any time soon, but architectural and topological issues need to be overcome (the sooner, the better)



  16. Read Techrights Without a Web Browser

    Any text editor can now be used to read Techrights, owing to a daily bulletin we've set up and will maintain every day



  17. [Meme] Torvalds Assimilated

    People belatedly realise that Microsoft’s plan for Git (and for Linux) isn't for the betterment of those projects but for Microsoft monopoly



  18. Links 27/10/2020: FuguIta 6.8, Fedora 33, Red Hat Satellite 6.8, KDE Plasma 5.20.2 and GStreamer 1.18.1

    Links for the day



  19. Site Changes Ahead of Anniversary

    We’re making some changes to the presentation and function of the site — changes that will become more prominent over the coming days



  20. IRC Proceedings: Monday, October 26, 2020

    IRC logs for Monday, October 26, 2020



  21. Links 26/10/2020: rpminspect 1.2, Open Source Hardware Certification and LibreOffice Conference

    Links for the day



  22. Links 26/10/2020: Debian "Bullseye" Artwork, Fwupd 1.5 Released

    Links for the day



  23. [Meme] Satya Na-DL

    Microsoft has shown its real priorities (just before the weekend when many people might not notice)



  24. Jonathan Wiltshire and Debian, Falsified Harassment Claims, Tiger Computing and GCHQ

    Reprinted with permission from Debian Community News



  25. Links 26/10/2020: Linux 5.10 RC1 and Loongsoon Laptops

    Links for the day



  26. The Downfall of Free Software Leaders (and Their Projects or Missions)

    "Cancel George Orwell, and happy hacking."



  27. IRC Proceedings: Sunday, October 25, 2020

    IRC logs for Sunday, October 25, 2020



  28. Links 25/10/2020: Kodi 18.9, ScummVM Android Love, Cutelyst 2.13

    Links for the day



  29. [Meme] Captain Zemlin and Neil McGovern's Ugly Legacy in GNOME (His Predecessors Work for Microsoft Directly Now)

    The Linux Foundation is already ‘sold’ and Microsoft Tim‘s interview with Neil McGovern, published a few days ago, was rather revealing (comments on the article/interview were also harsh)



  30. How Microsoft is Still Worse Than Google

    "I have decided that we should not publish these extensions. We should wait until we have a way to do a high level of integration that will be harder for the likes of Notes, Wordperfect to achieve, and which will give Office a real advantage."


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