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

03.03.09

Microsoft Faces Investors’ Backlash, More Quiet Layoffs

Posted in Bill Gates, Finance, Fraud, Microsoft, Steve Ballmer at 2:21 pm by Dr. Roy Schestowitz

Investments sign

Summary: Unreported crumbling and inner friction; Unless Microsoft reverses course, its investors remain pessimistic

THE Crandrea Group, a lobby of displeased Microsoft shareholders, is organising in attempt to change Microsoft’s ways. Having already made strong accusations against Steve Ballmer and Bill Gates, it is able to see that their strategy is headed the wrong way.

“That’s the magic of temporary workforce or contracts: they can be silently dropped without informing investors.”A lot of Microsoft’s chief staff began leaving the company over a year ago and lacking skilled leadership, the company resorted to buybacks, so right about now it’s approaching debt [1, 2, 3, 4, 5]. According to Smithers, the company had already lost $18 billion in 1998 and given a closer look at the facts Microsoft does not want reported, none of this should be particularly surprising. The company had also been accused of running a pyramid scheme and some years ago it was accused by one of its own workers that it had engaged in financial fraud. The accuser was paid $4 million for his silence. He worked inside Microsoft’s financial department at the time.

Cringely, a long-time Microsoft watcher, opines that Microsoft needs to close down many of its divisions and concentrate on fewer areas of business with only half of its current workers [1, 2]. Other Microsoft watchers have just reported that Microsoft is lowering the wages of temporary employees and according to their newer reports from Seattle, more positions are being terminated too, albeit quietly. That’s the magic of temporary workforce or contracts: they can be silently dropped without informing investors.

Microsoft declined to comment on the protest Monday evening.

The contract workers acknowledged that some employees are losing their jobs, but they said they’re nonetheless concerned about the precedent that would be set if they agreed to a revision in their existing contracts. A representative of the WashTech technology labor union, Priyanka Joshi, came to the protest and was planning to help the workers explore their options.

This has also been covered in:

He said he would not agree to the cut and would likely therefore lose his job Tuesday.

What is going on at Microsoft and why is the mainstream press hardly covering this?

Craig from The Crandrea Group is calling for immediate change amid troubling moves that Microsoft has been making in attempt to elevate itself at times of change. His campaign has been rather successful so far. He writes:

The campaign has attracted attention from numerous sites. It is posted on sites in Germany, England and Holland.

Recently, obtained a email from a writer in England requesting a interview concerning Microsoft R&D spending.

The campaign has also recently had a former MSFT employee agree to conduct an analysis of the company problems and relate them to the potential solutions offered through the campaign.

The articles created by Microsoft SubNet are greatly appreciated and have produced attention for the campaign. However, some of the other posts are merely focusing on the R&D component. As mentioned in the article, both Mr. McDonald and Mr. Barnicle agree that Microsoft is required to check the amount deployed annually.

The core of the campaign focus is in regards to the buybacks. The shares have been flat and stagnant since approximately 2000. In 2004, Microsoft announced a $40 billion share buyback plan. However, in 2008 the shares remained flat. Despite this reality the company announced it would engage in another similar strategy of deploying $40 billion over four years. The campaign’s contention is that it will be another waste of $40 billion.

The campaign desires the company to reallocate the $40 billion to acquisition growth. Consumers are moving towards SaaS, netbooks, handhelds and cloud computing.

The campaign now involves Microsoft acquiring RIM to secure market share within the mobile sector. It also involves a ‘search’ deal with Yahoo to secure a position in ‘search’ and cloud computing.

A current Microsoft employee within a Microsoft website indicated that if the campaign included RIM and it reached a vote they would probably vote in favor of the campaign.

We were sent further information, as follows:

The campaign has also edited and modified the blog. Initially, prior to launching the campaign the sites msftextreme., and Ironfire Capital’s site Breakout Performance were viewed. The intention was to provide a site to provide the reader with more analysis and insight. However, MSFT employees complained that it was to long and lacked the reader friendly format. Therefore, a few posts were removed and a few condensed.

The entire Microsoft SubNet interview has been kept on the blog. There are also a few more recent posts ina different format. The recent posts “Microsoft Requires Sprint” and “New Strategy Revised” provide brief details concerning the original intention of MSFT acquiring Sprint and why it now includes RIM.

Essentially, prior to launching the campaign numerous reports were reviewed. The consensus was abandon the buybacks. OS is losing share. Wall Street views MSFT as a utility with limited growth potential. Consumers are moving towards SaaS, cloud computing and handheld. Deal with carrier (Verizon) will not generate desired revenue and is only a share approach by MSFT. (Reference to Mr. Mahaney in Microsoft SubNet article)

The campaign adopted a strategy that intended to address each of these primary issues. Subsequently the strategy was to abandon the $40 billion towards buybacks. The capital would be directed to replacing the potential continued loss in OS.

The campaign focused on adopting acquisitions or strategies that would align with $40 billion in capital. When reviewing mobile companies RIM was considered. However, it was rejected based on the acquisition cost and revenue level. It appeared similar to the ill-fated Yahoo bid. RIM would have cost MSFT a premium and generated only an additional $6 billion annually.

The other problems with RIM were MSFT and its poor brand. The concern was MSFT acquiring RIM would have a negative effect on RIM’s brand. The second problem is MSFT and its R&D and lack of innovation. It was feared MSFT acquiring RIM would hinder RIM from being innovative. Therefore, the final dilemma was if MSFT acquired RIM it would deploy the majority of the $40 billion to acquire a company that would lose its brand awareness and innovation. This would result in MSFT deploying $25-30 billion to secure a failed asset.

However, recently, a MSFT employee addressed the RIM issue. It is within the blog post “Microsoft Requires Sprint” as a recent addition. The employee focused on the campaign concerns are argued the benefits of RIM over Sprint. The same employee also stated that they would potentially support the campaign if it reached a vote.

The campaign also recognised that ‘search’ was an issue along with cloud computing. This was recognised by MSFT and was probably the reason for a $45 billion bid for Yahoo. However, analysts indicated the a search only deal would accomplish the same results as a full acquisition. Therefore, the campaign is pushing for a ‘search’ deal with Yahoo. This will enable MSFT to capture share within this sector.

The “New Strategy” currently involves:
1)Abandon buybacks
2)Acquire RIM. This will provide share and revenue within mobile.
3)Search deal with Yahoo
4) Resignation of Ballmer (Not certain with this issue) Numerous employees have stated Ballmer must ago. Despite eight years of poor decisions, failure to elevate share price and massive spending, employees are also frustrated with the current company environment. (ie. layoffs)

A lot of other people have already called for Steve Ballmer to step down or be fired. We gathered a list of of a dozen references on the subject right here.

Microsoft won’t be able to endure its financial trouble [1, 2] if it competes unfairly and subsequently gets caught. The company’s inappropriate behaviour (possibly illegal too) does nothing good for the brand. It also serves Microsoft investors a bill to pay for antitrust fines.

“If you flee the rules, you will be caught. And it will cost you dearly.”

Neelie Kroes (about Microsoft), February 27th, 2008

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

5 Comments

  1. David Gerard said,

    March 4, 2009 at 9:29 am

    Gravatar

    Can they spell “goupr” yet? Is this a serious known group of people as yet?

  2. David Gerard said,

    March 4, 2009 at 9:30 am

    Gravatar

    Oh, and don’t forget their actual plan: replace Steve Ballmer with Carly Fiorina. WHAT.

  3. Roy Schestowitz said,

    March 4, 2009 at 9:33 am

    Gravatar

    Yesterday in the news: Carly Fiorina has surgery for breast cancer

  4. twitter said,

    April 22, 2009 at 8:44 pm

    Gravatar

    M$ deserves Fiorina. Known as “the rockstar” for her fancy suits and back stage entrances and escapes, she’s been credited with “ending the HP way” of respect for employees and group support. The company engaged in blatant censorship of negative comments and she resigned in the cloud of a major employee spying scandal. If Bill Gates thinks he needs a slash and burn profiteer and control freak to finish M$ off, he’s got the perfect candidate. M$ and Intel still owe her a few favors for killing off Alpha and not dropping GNU/Linux plans. Her $21 million “golden parachute” looks like chump change compared to the last three years of public looting. The only real question is if M$ has enough money to be worth her while.

    Roy Schestowitz Reply:

    Fiorina turned HP into some form of a modern corporate Stasi.

    Microsoft may sympathise.

    Leaked Microsoft Dossier on Journalist
    http://slashdot.org/articles/07/03/28/139249.shtml

What Else is New


  1. Links 25/6/2019: Mesa Releases, Less Microsoft in Apache

    Links for the day



  2. The European Patent Office Remains a Crooked Patent Office That Harms Staff and Abolishes the Rule of Law

    The EPO remains a sordid mess, but those who follow mainstream media might not know anything about it because it's not covered anywhere in 2019



  3. USPTO and EPO Faking Growth by Granting Patents on Everything in Nature, But Campaigners Strike Back

    The patent microcosm is eating the world; everything under the Sun must be patented, they insist, even life itself (so they can 'pirate' the Commons and then charge us a tax for 'access' or 'license' to it)



  4. IBM Happy That Patent Quality at EPO Collapsed and It's Easy to Get Software Patents

    The EPO keeps granting illegal European Patents and the media almost never mentions this illegality because it's in too amicable a relationship (typically financial) with the EPO



  5. The Linux Foundation's Staff Uses Windows and Microsoft. Now the Foundation Outsources the Coding and Hosting, Too (to Microsoft of Course).

    The disturbing turns of the self-described "Linux" Foundation, which seems to be promoting proprietary software and even Microsoft rather than Linux and Free/Open Source software while the role or capacity of Torvalds is being gradually diminished



  6. Links 25/6/2019: Raspberry Pi 4, Ubuntu's Change of Mind, Wayland’s Weston 6.0.1

    Links for the day



  7. Patent Extremism: Stacking the Panels, the Surveys, the Hearings, the Debates

    Projection tactics would have the public believe that those who oppose corruption are simply radicals; patent polarity has come to the point where if one isn't a "true believer" in blackmail (patent trolls) or opposes bribery, then one is simply a "fringe" and akin to terrorists



  8. Links 24/6/2019: Linux 5.2 RC6, Skrooge 2.20.0, ZFS vs. OpenZFS

    Links for the day



  9. The EPO Needs a President Who Obeys the Law, Not One Who Obeys Battistelli

    Succession based on nepotism at Europe's second-largest institution served to shown how inherently broken things had become and why cover-up of injustices is nowadays paramount (not fixing the flaws/ills but merely perpetuating them)



  10. With Water (Treatment) Already Patented It Won't Take Long for Patents (and Patent Royalties) on Air

    A 'paper economy' is what Europe turns into if the current trajectory is followed (led by lawyers, not producers)



  11. Bill Gates Said He Was on a “Jihad” Against GNU/Linux, But GNU/Linux Users/Developers Engaged in Self-Defense Are Foul-Mouthed 'Microsoft Haters'?

    Microsoft, which routinely commits very serious crimes, tries to come across as some sort of philanthropy whereas those who share their work with the public (for greater good) are described as erratic, rude and unworthy of respect from corporations (outcasts basically, deprived of income source)



  12. What Patents the EPO Has Just Awarded (With a Special Reward), Not Just Granted

    The EPO's practice of elevating some patents over the other patents (European Patents) is perhaps more of a societal liability than the EPO cares to realise



  13. Required Reading: Mental State of Team Battistelli/Campinos

    On the heels of yesterday's article about Team Battistelli/Campinos, here are some recommended/required papers on the problem which likely plagues the Office



  14. Links 23/6/2019: Wine 4.11, FreeBSD 11.3 RC2

    Links for the day



  15. Microsoft Apparently Did a Patrick Durusau on Wim Coekaerts to Broaden Its Control Over GNU/Linux

    Microsoft tactics for defection and takeover of the competition (without coming across as hostile) aren't new tactics; internal documents from Microsoft explain how to achieve this



  16. EPO Directors Would be Wise to Rebel Against Team Campinos While They Still Have the Job

    As the EPO continues its bold journey towards dictatorship (where presidencies are passed between friends and ‘circles’ are former colleagues or close confidants) Techrights urges those who have power to speak out — e.g. EPO judges and Directors — to do something before it’s too late



  17. American Front Group Open Invention Network (Riding the Linux Brand) is a Proponent of Software Patents in Europe

    The impact of American multinationals in Europe is difficult to deny; in fact, we're observing the same old lobbying/lobbies still working hard albeit more covertly (typically using front groups)



  18. Say 'Hey Hi' to Software Patents

    Using the “AI” (“HEY HI”) hype the ‘community’ of patent maximalists hopes that every little (and possibly very old) algorithm will suddenly sound amazing and innovative — to the point where it becomes unthinkable to deny a patent monopoly on it



  19. A Personal Note From Ted MacReilly (How Microsoft Works Against GNU/Linux)

    A tongue-in-cheek write-up highlighting the ways Microsoft insiders think and how they strategise against GNU/Linux and Free/libre software



  20. The Linux Foundation's New Vice Chair, Wim Coekaerts, Worked for Microsoft

    The Linux Foundation is boosting the Microsoft boosters and calls that "community"



  21. Links 21/6/2019: GNOME 3.33.3, 32-Bit Support Further Neglected, DragonFlyBSD 5.6.1 Released

    Links for the day



  22. Leaked: Harassment of EPO Directors by Team Campinos

    “New BIT organisation and staff changes,” a novel kind of newspeak, means that Directors are being severely punished without due process at all (“hidden disciplinary measure without disciplinary proceedings”)



  23. Patent Professionals in Europe Have Devolved Into a Marketing Industry

    Lies, buzzwords and hype waves is all that the patent bubble in Europe boils down to these days; loads of bogus patents get granted only for European judges to smack these down (if one can afford the court battle)



  24. Almost Six Months After Iancu Said He Would Make Software Patents Great Again Nothing Has Actually Changed

    We're just a fortnight away from the ludicrous plan of Iancu celebrating 6 months (without accomplishing anything)



  25. Links 20/6/2019: Kubernetes 1.15, Alpine 3.10.0 and Librem 5 June Software Update

    Links for the day



  26. Ignore the EPO's Dumb Festival and Focus on the Abuses Against the Workforce and Its Quality of Work

    Don’t lose sight of the appalling behaviour of the management of the EPO; the last thing it wants is press coverage about its gross abuses and corruption — an aspect it spent literally millions of euros to bury (gaming the news cycle)



  27. Microsoft Attempting to Destroy the Careers of Its Critics, Including Free Software Proponents

    Microsoft isn't changing and has not changed; the tactics described above are still being used, even by its "Open Source" (or "Open at Microsoft") people, who did this to me



  28. Links 19/6/2019: Linux Mint Vs Vista 10, Qt 5.13 Released

    Links for the day



  29. The Linux Foundation's Business Model

    The Linux Foundation's plan, illustrated



  30. Links 18/6/2019: i386 Abandoned by Canonical and a New osquery 'Community'

    Links for the day


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