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

Defending Women Isn't a Crime, Everybody Can Agree on That
Their culture is unlike ours
EPO "Cocaine Communication Manager" - Part VI - Influx of Spaniards and Portuguese Workers (+77%) at Europe's Second-Largest Institution, Led by the 'Alicante Mafia'
There is now data supporting this assertion, new and complete data in fact
Nobody is Safe at IBM (or Red Hat)
There is no job security at IBM
Bad faith: Hugo Roy knew FSFE impersonating FSF before French tribunal, colleagues deceived
Reprinted with permission from Daniel Pocock
 
Over 1,500 EPO Workers Went on Strike Last Week
a new publication which celebrates some accomplishments of industrial actions and calls for further actions
Madame Streisand Wanted to Censor The Web, Instead She 'Created' a New Term, "Streisand Effect"
It is basically an own goal
Solicitors Regulation Authority (SRA) Failed to Detect Fraud in Law Firms... Until It Was Too Late
Earlier today we contacted some more politicians about this and received mail from them as well
Our EPO and IBM Coverage Bears Fruit
In case insiders want to get in touch with us, please ensure or at least try doing so securely
Links 03/03/2026: "Scam Altman in Damage Control" and Oil Traffic Disrupted
Links for the day
Gemini Links 03/03/2026: Phones, LLMs, and Changes on the Web
Links for the day
Richard Stallman Confirms Talk in Bern Next Week
Dr. Stallman has just formally confirmed his third talk this month in Switzerland
GNU/Linux at All-Time High in Guam
there are many computers in that island
Microsofters' SLAPP Censorship - Part 1 Out of 200: Claim No. KB-2024-001270 in a Nutshell
abuse of process by a law firm working for an American who was arrested for strangling women and another American whose own spouse calls a "rapist"
When EPO Team Managers (TMs) Are Harassing People Who Strictly Apply the European Patent Convention (EPC) in Patent Examination
There are two strikes planned for this month
Confirmed: Using Slop Gets You Fired
Let the story of Benj Edwards be a cautionary tale
Links 03/03/2026: "No one wants to read your AI slop" and "chatbots in the kill chain"
Links for the day
EPO and "Equivalent to More Than 100 Days of Strike"
The industrial actions continue and already have a positive effect
Streisand Effect, the Microsoft Way
Microsoft has once again proven the Streisand Effect
Keeping Track of IBM Layoffs in March 2026
IBM depends on bribery
GNU/Linux Measured at 7% in Yemen
Windows is too hostile and dangerous
Links 03/03/2026: Security Breaches, Iceland Wants EU Membership, and "Wall Street–Backed Lawmakers Want to Help Banks Gouge You"
Links for the day
Queensland Health Payroll System: IBM billion-dollar-blowout inquiry
Reprinted with permission from Daniel Pocock
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, March 02, 2026
IRC logs for Monday, March 02, 2026
Gemini Links 03/03/2026: GrapheneOS and Keyboard Shortcuts
Links for the day
Tomorrow should be sunny (at long last!) and a generally productive dayProductive Week Ahead
Tomorrow should be sunny (at long last!) and a generally productive day
Only One Slopfarm Seems to Have Targeted "Linux" Today
It certainly does feel like the slop hype is reaching the "late life crisis" and companies that benefited from this bubble are overdue for a day of reckoning
Microsoft Mass Layoffs: Being Sacked at 1AM in the Morning
Watch what happens to Microsoft employees who get pregnant
Links 02/03/2026: More Social Control Media Bans, Climate Change Woes, and "Journalist With Germany's Deutsche Welle Arrested in Turkey"
Links for the day
Gemini Links 02/03/2026: Small Phones, "I 3D Printed My Brain", and "Managing 5 Servers at Once with tmux"
Links for the day
IBM is Trying to Hide Mass Layoffs, Not Only With NDAs and 'Scripted' LinkedIn Posts
From what we can gather (screenshot above), today many people leave IBM and Red Hat
Richard Stallman is Giving a Public Talk This Week (Friday in Lucerne School of Computer Science and Information Technology)
His birthday is just around the corner.
Windows Falls to New Low in World's Largest Population (India)
Windows is now down to 7%
Never Miss a Good Opportunity to Shut Up and Drink Coffee
Threats come at a cost; each time you issue a threat you stigmatise yourself as a bully
Last Month Matthew Garrett Said Ridiculous Things After His Spouse Had Called Him a "Rapist", Now He's Trying to Take the Site Offline and Put My Family in Prison
The real issue of concern to him (and his alleged reputation) is the spouse and the matter is to be dealt with in America, not the UK
Machine-Generated Legal Documents, Over 2,000 Pages Sent to Us Today Alone
We now know that the papers we receive are produced using bots (algorithms)
Reporting to Our Politicians/MPs the Failure of the SRA to Stop Hired Guns Who Help Americans (Men Who Attack Women and Nowadays Also Attack British Reporters)
About a month ago my wife wrote to politicians to get the ball rolling
The Topic Many People Don't Want to Talk or Write About
"DEI" is inherently about making racial and gender patterns better reflect society's
XBox is Virtually Dead Already, What Next Will Die at Microsoft?
Now that there are mass layoffs at Microsoft datacentres it is not premature to speculate about what dies after XBox
For the First Time, statCounter Measures Internet Explorer at 0.01% "Market Share"
What Microsoft replaced it with is just a Chrome clone with extra spyware
Was a Lot of "Windows" and "Unknown" in Iran Just GNU/Linux in Disguise?
more than 1 in 10 desktop/laptop requests is estimated to be GNU/Linux
"Here in the UK, GNU/Linux rose to all-time high at Windows' expense"
Will this entail Software Freedom as well? This depends on all of us
Links 02/03/2026: Claude Code Causes a Mexican Government Cyberattack, "London Repair Week" Noted
Links for the day
2026 Microsoft Mass Layoffs in So-called 'AI' Datacentres, Why Doesn't the Mainstream Media Cover The News?
What does this tell us about the state of the media?
Don't Fall for "Top X Law Firms" in "Discipline Y", They Pay $Z to Get False Endorsement/s
It's a scheme, a scam, an elaborate fraud
More Publishers Have Turned From Slop Boosters Into Slop Sceptics and Critics
There's a "hidden cost" when one participates (for profit) in "pump and dump" schemes
TeX Live Has New Release, But Planet Debian Won't Tell You That
It 'unpersoned' the developer
LLM Slop Does Not Know People (It Knows Nothing) and Cannot Distinguish Between People. It's a Recipe for Disaster.
no way of knowing who's who
"Over 1,100 Law Firms Gone in Five Years" in the United Kingdom (UK) Alone
There are basically way too many lawyers (looking for "business", e.g. threats and lawfare) and not enough positions to fill
Microsoft FUD From Microsoft Site Helps Distract From Actual Microsoft Back Doors
Published on a Sunday
Free Software Foundation Needs to Become More Active in Europe to Avoid Impersonation by Microsoft-Sponsored Groups
So far we've hardly seen the FSF saying anything at all about the US president
Links 02/03/2026: "Not Envious of Billionaires" and Palantir SLAPPs "Swiss Magazine For Accurately Reporting That The Swiss Government Didn't Want Palantir"
Links for the day
There Has Never Been a Better Time to Quit Social Control Media
Those networks are selling something. And that something is not peace because peace does not sell "attention".
Microsoft Users Drowning in Slop, If They Complain Microsoft Censors Them
Like an authoritarian regime
IBM is Killing Red Hat's Portfolio - Including Linux - to Prop Up Ponzi Scheme ("AI")
IBM is killing Red Hat
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, March 01, 2026
IRC logs for Sunday, March 01, 2026
Speed of Sites Matters
Being easily accessible all the time matters to us
Gemini Links 02/03/2026: Weird Phone Calls, Small Phones, and Exploring Racket
Links for the day
Dr. Andy Farnell on "Good Tech"
in the age of "rent everything" and "own nothing"
Gemini Links 01/03/2026: Simpler Software and Announcing OFFLFIRSOCH (OFFLine-FIRst SOftware CHallenge) 2026
Links for the day
EPO "Cocaine Communication Manager" - Part V - Jobs at the EPO for Those Connected to Cocaine Addicts (Skills Not Required)
EPO management is trying to shoot the messenger
Booz Allen Hamilton, the Former Employer of Edward Snowden (NSA Contractor), is Drowning in Debt
Can Supreme Leader Cheeto bail it out like he does slop companies?
On the Concept of "Protected Class" (or Race) at IBM
It's self-harming as in practice it imperils the company and harms the reputation/brand
The Mass Layoffs at Microsoft That Nobody in the "News Industry" Wants to Talk About (and TheLayoff.com Censored, Then It Censored the Evidence of the Censorship)
They basically cover up how they censored the news about Microsoft layoffs
Richard Stallman to Give at Least Three Talks in Switzerland, Starting This Week
No mention (yet) of the Bern talk
On Who 'Speaks for' Techrights
typically a case of misrepresenting the site
'FSFE' an Imposter in Europe, Paid by GAFAM to Represent GAFAM Interests
The Microsoft-sponsored 'FSFE', which violates the terms of use of its name, is causing confusion [...] formally-recognised institutions got tricked into thinking that the Microsoft-sponsored 'FSFE' is the FSF
Lots of Lies From the Slop Industry
The slop industry relies on fake news to give a notion or fake demand
Links 01/03/2026: American Plutocrats Buy American Media While American Constitution Shredded
Links for the day
Teaser: The Next Series About the SRA, Which Would be Just as Effective as It Is Right Now If It Had Zero Employees
the lapdog (of the "litigation industry") that is meant to be perceived as a watchdog
Solicitors Regulation Authority (SRA) Inaction and Incompetence - Part I - Introduction
The SRA is a sham. Many people know this already, but we want to document our own experiences with it.
Live Simply, Live Better
Life isn't about "collecting" possessions; it's about doing things that matter and accumulating knowledge so as to make better choices
Now That XBox is Pretty Much Dead and There Are Mass Layoffs at Microsoft
This means our predictions about Microsoft (and XBox) are "falling into place"
Gemini Links 01/03/2026: "In the Spirit of OFFLFIRSOCH" and "Delete Patreon"
Links for the day
ACM Lowers Its Standards for Age of Autocracy
IBM is more than happy to work with autocracies
The term FUD (fear, uncertainty, doubt) was created to describe IBM's tactics and IBM is doing it again
Rob Thomas or "RT"
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, February 28, 2026
IRC logs for Saturday, February 28, 2026