Bonum Certa Men Certa

Cringely Says Microsoft Should Fire 50,000 Employees; More Dead Teams Surface

Axe



IN OUR PREVIOUS ANALYSES of Microsoft's tough situation [1, 2, 3, 4, 5] we supported the allegation that Microsoft is in effect firing a lot more than just 5,000 people. The company has a handle on its peripheral workforce whose contracts it need not renew.

Pseudonym Cringely, in another one of his spectacular stabs at the subject, points out that another methodology for quietly firing people may be the company's routine of discarding the least-performing tier of employees, some of whom may leave voluntarily. In Microsoft's HR department, significant reductions have already been reported, which suggests that new hires will be left at the backburners. Here are some other portions worth quoting:

Next let’s consider how big a layoff this really is – 1400 people right away and up to 5000 by sometime in 2010. Microsoft has, depending on how you count it, about 100,000 employees. If the average time in service is 10 years that implies that 10 percent of the Microsoft workforce leaves every year, which feels about right. That’s 10,000 folks leaving of their own accord EVERY YEAR. So what does this layoff mean, anyway? “Over the next two years we’ll be eliminating 5000 positions.” It means nothing.

[...]

So unlike every other public company, Microsoft traditionally manages its earnings not by cutting expenses but by increasing spending. It’s a legacy technique invented years ago by legendary CFO Frank Gaudette and embraced by Bill Gates and Jon Shirley because it accomplished the task of meeting Wall Street expectations, allowed the company to hide spectacular true profit margins, while still generally keeping anti-trust officials off Microsoft’s back.

[...]

Instead of 5000 positions, the company should drop 50,000. It should decide what businesses it is in and close or sell the rest. It should be a lot better than it is at running its true core – the muscle that’s been hiding beneath all that fat.


Yesterday we wrote about Microsoft projects, division, services or products that had been rendered dead. Here is another one which was caught by Mary Jo Foley.

It looks like Microsoft’s Global Foundation Services (GFS) team is, indeed, among those taking a hit.


This won't be formally announced until later in the week. They must be working out a way to perfume, embellish pr beautify it somehow.

"Microsoft's perspective is best reflected by Bob Herbold, Chief Operating Officer, to whom the CFO reports. Bob very sincerely replied, "Bill, everyone is doing it." My response was that Microsoft is a leader and that others are now seeking to emulate these fraudulent practices they have legitimized. Naturally Bob was not pleased by this perspective and that was our final conversation."

--Bill Parish



Recent Techrights' Posts

[Video] Thórhildur Sunna Ævarsdóttir (Iceland, SOC) Explains That Julian Assange Was Punished for Exposing Crimes (Instead of the Criminals Getting Published)
Thórhildur Sunna Ævarsdóttir speaks out...
Links 04/10/2024: Health, Asia, and Censorship
Links for the day
Revisiting Julian Assange's Excellent Talk, His First Talk Since 2019 (Tactful and Almost Invulnerable to 'Cheap Shots')
Assange need not be politically-correct or self-censor
 
[Meme] Who to Trust on Privacy... (Not Someone Who Boasts About Breaking Into Devices Without Authorisation)
You're not even a computer scientist...
When It Comes to Encryption, The Web (as in World Wide Web) Isn't Secure and Uses Weak Ciphers About as Often as Every Day, Even in 2024
Gemini Protocol does not
The GPL Does Not Prohibit Use of Code for Death
Windows kills even more people, but in other ways
Journalism in Europe on Life Support
Assange articulated some of the ordeals he went through
[Video] Stella Assange and Thórhildur Sunna Ævarsdóttir on Protecting Journalists Who Expose Injustice
Stella (the wife) says her husband received an invitation from the committee (PACE) while he still undergoes recovery
Links 04/10/2024: Ingrid's Back and Creative Mornings
Links for the day
[Video] The Council of Europe's Parliamentary Assembly on Julian Assange
The Council of Europe's Parliamentary Assembly has voted to confirm that Julian Assange was held as a political prisoner
Links 04/10/2024: Telegram Issues Deepen, Texas Sues TikTok
Links for the day
"The Council of Europe's Parliamentary Assembly has voted to confirm that Julian Assange was held as a political prisoner."
This stuff should not have been in Twitter (X)
Intercontinental Ballistic Missiles (ICBMs) Do Not Run Windows
The projects that deal with ICBMs are extremely unlikely to involve Microsoft
"Microsoft is asking for a handout... yet again"
Just over a month after the last bailout fell through the cracks
One Step Closer to the End of Microsoft's XBox
XBox sales are down over 50% in the past year
GNU/Linux Flaring Up in ASEAN
We said we'd not post statCounter for a few months
Gemini Links 04/10/2024: Asteroid City and Retro Gaming
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, October 03, 2024
IRC logs for Thursday, October 03, 2024
Resting Time
we deserve a short break - even if only for tomorrow
Wikileaks Revelations About the History of IBM and Its Role in the Cold War
IBM is still an ICBM company (to this very date)
Windows Kills More Than Most Wars (But the Media Casually Ignores the Death Toll of Microsoft)
The bottom line is, many people are dying, they die due to Microsoft, and the media fails us by not informing us and failing to even name the principal culprit
Mozilla is GAFAM, HTTPS is Monopolies
Firefox used to boast that it would make the Web more accessible. Today's Mozilla is rowing in the opposite direction.
Gemini Links 03/10/2024: RetroChallenge and Change of Online Habits
Links for the day
Links 03/10/2024: Quantum Computer Vapourware (as Usual) and Samsung Layoffs
Links for the day
Links 03/10/2024: "Hey Hi" Scandals and Copyright/Trademark Disputes
Links for the day
Invidious Seems to be Nearing 'End of Life' After Repeated Crackdowns by Google/Alphabet/YouTube
To Free software users, YouTube ought to become a "no-no"
Links 03/10/2024: Climate Issues and Tensions in East Asia
Links for the day
Like a Marketing Department of Microsoft, Canonical Sells Back Doors and Surveillance as "Confidential" and "Hey Hi" (AI)
Notice how Canonical has made no statement critical of Microsoft for years
Gemini Links 03/10/2024: Frozen Tofu and SGI O2
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, October 02, 2024
IRC logs for Wednesday, October 02, 2024
Links 02/10/2024: Microsoft Spying on Windows Users Grows, Microsoft's Surveillance Arm LinkedIn Used to Highlight Employment Crisis
Links for the day
Links 02/10/2024: Students Who Can’t Read Books and Dead Butt Syndrome
Links for the day
Gemini Links 02/10/2024: GNU/Linux Distros, Flat-File Databases, and How the Web ate Gopher
Links for the day
Technology: rights or responsibilities? - Part II
By Dr. Andy Farnell
A Cost-Free Bribe From Microsoft
Daniel Stenberg is not dumb, but he seems rather gullible or unprincipled
Plans for the Site's 19th Year
Like TechDirt, we expect to devote more efforts/time to covering free speech online
Network Getting Faster
Loading up the site in 0.077 seconds
The Manchester Experience
Yesterday Tux Machines served 436,897 Web hits
If Red Hat Has Mass Layoffs This Year, Nobody Will Tell You About It
We seem to have entered a strange quasi-cosmic era wherein layoffs aren't disclosed anymore and news sites don't bother to report them, either
IBM, Kyndryl, Subsidiaries (Like Red Hat) and Silent Layoffs
Kyndryl follows in IBM's footsteps with rolling layoffs likely affecting thousands
Anniversaries and New Beginnings
The world needs more transparency and far less secrecy
Links 02/10/2024: Microsoft Kills Off HoloLens, Media Discusses Assange Speech
Links for the day
Gemini Links 02/10/2024: New Car, Broadband, and Gemtexter 3.0.0
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, October 01, 2024
IRC logs for Tuesday, October 01, 2024