07.23.14

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Microsoft Layoffs of 2014

Posted in Microsoft at 3:24 am by Dr. Roy Schestowitz

Summary: Another quick look at Microsoft’s horrible state of affairs and why it has virtually nothing to do with Nokia

The pure fiction that Nokia and Microsoft are the only aspect to be debated in amid the layoffs discussion was covered here before. It is coverup, it is ‘damage control’, and it is successful PR. There is no lack of analyses, e.g. [1,2,3]. Here is Ahonen saying that “Elop authors another moronic memo”. Based on him, a third of those to be laid off have nothing to do with Nokia. “First,” he said, “my deepest sympathies to the 12,500 former Nokia staff who now carry Microsoft business cards, who will be fired. Its nearly half of what was left of ‘The Division Formerly Known as Nokia Mobile Phones” after all the layoffs that Elop’s mismanagement at Nokia caused in the previous four years. I did warn that the layoffs would not end, when the Microsoft purchase of Nokia was announced and as we’ve seen, the division has been producing ever more losses and ever shrinking market share. The solution by the new CEO Nadella at Microsoft is predictable as its harsh: more layoffs. I had hoped that Microsoft would have endured these highly skilled specialized labor for longer, letting them try to find some remedy to the handset business or assist other Microsoft hardware (or mobile) evolutions but no. The new CEO has spoken. And as new CEO, now is the right time to make the big cuts. Microsoft has never seen this kind of mass layoffs before, and as the whole corporation, the cuts are about one in ten employees. But they are almost exclusively inside the Nokia handset part. And unfortunately for Microsoft’s mobile unit, Elop still gets to keep his job (for now).”

Microsoft has already used Nokia to make antitrust complaints against Google and Android in Europe. Andrew Orlowski has this update on it:

Industry sources have confirmed to The Reg that the European Commission is once again prodding Google’s Android contracts with phone makers. Preliminary letters, sent out a month ago, merely ask the phone makers if they find anything in Google’s contracts restrictive.

Windows revenue is decreasing despite squeezing of customers who are locked in. This does not look good for Microsoft and some sources speak of new work limits. “After announcing a big round of job cuts,” says this article, “Microsoft issued new policies concerning contract workers and how long they can work for the software giant.” These are the hallmarks of a company in collapse.

The layoffs at Nokia are actually Microsoft layoffs but there are also purely Microsoft layoffs. Microsoft has been trying to paint it as a Nokia issue using an ugly memo which gets slammed as follows: “Well, congratulations to Satya Nadella and the Microsoft HR and communications teams, because you’re stealing from the best—or maybe you all took the same course in corporate doubletalk and truthiness as part of your MBA programs. Microsoft this morning announced far and away the largest round of layoffs in its history, and Nadella’s e-mail drips with that familiar mixture of faux sympathy and non-information that is so typical of carefully managed corporate communication.”

As there are many dead products at Microsoft, so it should not be surprising that Microsoft also kills Android endeavours from Nokia. “Citing lack of interest,” says this new article, “Lenovo pulls 8-inch Windows tablets from the US,” so Windows is not a viable alternative, that is for sure.

“Detractors further derided Windows 8 as a misguided attempt to be all things to all people that actually ended up pleasing nobody,” said this other new article, so there is consensus on this. “In China, Windows Phone saw a collapse from 3% to o.6%,” says this report and even a Microsoft booster, Preston Gralla, calls BS on claims of the Bill Gates- and Microsoft-funded Gartner Group. Meanwhile, reveal the words of Bill Gates, there may be an attempt to import cheaper labour. As Sen. Jeff Sessions put it, “Super billionaires aren’t happy apparently… They declare we need to import more foreign workers. Mr. Gates says we need to let more and more people into our country to take those kinds of jobs.” See more here or here. Apparently, Bill Gates is now a writer for the New York Times, a paper for the plutocrats, by the plutocrats, cheapening the 99%.

It is fine for everyone around the world to share jobs. What’s not fine is using globalisation for a race to the bottom, as Microsoft did with criminal lobbyists such as Abramoff in the past, amid Gates’ immigration policy hijack (we covered it years ago).

Microsoft announced layoffs but said nothing about the temps it had been hiring to hide shrinkage of the company for years. There was a puff piece/PR from CNN [1, 2], to which there was a response in Pogson’s blog.

For those who want what Nokia would have offered if it weren’t for Microsoft, there’s Jolla, which has just reached another 1.0 milestone [4,5].

Related/contextual items from the news:

  1. The Told You So blog about Nokia Predictions and Analysis

    Now look at Nokia. That ‘struggling’ Nokia which in 2010 still sold its smartphones running on the ‘obsolete’ Symbian system. Nokia in 2009 sold 67.8 million smartphones. Did Nokia lose sales to Apple in 2010? Did that number go down while Apple’s iPhone grew so much? No. Nokia grew. Really? Yes reallly. Nokia’s smartphone sales grew to 103.6 million units (the final, corrected number by Nokia financial reports). Nokia’s smartphone sales during calendar year 2010 grew 35.8 million units !!! The gap between Apple and Nokia smartphones was not narrowing during 2010. Apple was not catching up to Nokia. Nokia smartphone unit was the global juggernaut totally crushing its competition – and yes – the numbers are indisuputable, the gap between Apple iPhone and Nokia smartphones was GROWING during 2010, not shrinking. Apple was not ‘catching up’ to Nokia, Nokia was indeed ‘pulling away’ from Apple (and from Blackberry and from Samsung etc). And Nokia did this profitably, and its smartphone unit produced a Nokia-record profit by Q4 of 2010. Nokia was not losing, The numbers are crysta-clear if you can do basic math. Nokia was clearly winning the war.

  2. Cheer up, Nokia fans. It can start making mobes again in 18 months

    When Microsoft swallowed half of Europe’s biggest tech company, it was only a matter of time before it spat something out. And so it has, ending Nokia’s thirty-year roller-coaster ride.

    However, the decision will make tens of million of its customers take a look at Android – surely the last thing Microsoft wanted to happen.

  3. Nokia X, We Hardly Knew Ye

    “I told you so” is a refrain that’s oft-heard here in the Linux blogosphere, and more often than not it refers to some fleeting Microsoft tie with FOSS that subsequently goes wrong.

    The latest example? It’s a doozy. Redmond not only is laying off many, many thousands — most of them in its ill-fated Nokia unit — but also abandoning its short-lived support of Android through the Nokia X line of phones.

  4. SAILFISH OS HARDWARE ADAPTATION DEV KIT RELEASE 1.0

    Months back, we had Sailfish OS released on Nexus 4, in very alpha stage while many things didn’t work and after any update they got better and better and more stuff started working.

    Now though, Jolla is asking YOU to port the OS to your Android device (Running Cyanogen Mod 10.1.x) while it’s hot.

  5. It’s Now Made Easier Porting Jolla’s Sailfish OS To New Android Phones

    This week Jolla has finally released their Hardware Adaptation Dev Kit (HADK) publicly to make it easier for enthusiasts/developers to port the Sailfish OS platform to new Android smart-phones.

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