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

European Patent Office (EPO) Series: Czech Mate: EPO Kingmaker or Merely a Pawn in the Game?
recent "missions" of the EPO President
SLAPP Censorship - Part 131 Out of 200: A Big Win for the Media in the United Kingdom (UK) Today
In a democratic society the Right to Know, which is closely connected to freedom of the press (or what one might label "blogging" or "blag"), comes above all else, except where there are lives being put at risk
IBM's Fedora Plans to Integrate Slop Into "Fedora Workstation as a Default Feature."
IBM does not care whether the community wants this or not
The Media Talks a Lot About XBox Layoffs, a Closer Look at the Data Shows Microsoft 'Bloodbath'
'Bloodbath' is the term insiders use
 
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, July 07, 2026
IRC logs for Tuesday, July 07, 2026
Links 07/07/2026: Microsoft Cuts Doom "id Software" and Turkey Detains Journalists
Links for the day
Gemini Links 07/07/2026: Old Computer Challenge (OCC) and Hardware Tests
Links for the day
A Break From the Routine
What matters is what whistleblowers keep feeding information to us
SLAPP Censorship - Part 132 Out of 200: When You Cannot Pay a Million Pounds (1,335,520.00 United States Dollar) to Lawyers But Have a Strong Community
Techrights compensates for its fiscal poverty with a wealth of community spirit
Fame is Not the Goal
"Fame" kills
Mental Health in Free Software Communities
clearly there is a subject that merits debate and it ought not be a taboo anymore
The Era of Sponsored Spam
There is no "era of AI", there is era of BRIBES to PRETEND there is an "era of AI"
Gemini Links 07/07/2026: Cleaning, Old Computer, and More
Links for the day
Links 07/07/2026: Le Monde Combats LLM Slop Plagiarism, "ACLU Launches Largest Ever Midterm Electoral Program"
Links for the day
Extremism in the Free Software World is Mostly a Myth
Only the firm belief that justice applies to all will produce a just society
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, July 06, 2026
IRC logs for Monday, July 06, 2026
Links 07/07/2026: Kernelized Secure Operating System (KSOS) and "Exploiting Thoughtcrime in LLMs"
Links for the day
SLAPP Censorship - Part 130 Out of 200: Jealousy, Envy, Hubris
This site is primarily about Free software
Gemini Links 06/07/2026: Still Mostly Dry, GoToSocial, and More
Links for the day
European Patent Office (EPO) Series: Effective Dispute Resolution… But Not For EPO Staff
Slovenia fielded one of the few Administrative Council delegations which managed to maintain its own independent line against the tyrannical EPOnian "Sun King"
Community Sites Need Genuine Collaboration and True Autonomy
People who want to communicate, federate and organise for effective change need to evolve
Free Software Foundation (FSF) Covers Quibble, Free Software for Secure Communications, in the FSF Summer Bulletin
The Georgia Tech folks are bringing Free software education and contributions to one of the better known Computer Science hubs in the US
Microsoft Layoffs Include Windows, Bing, Slop (CoPilot etc.) and There Will More More Rounds (or Waves) to Come
"43% of Xbox laid off"
Obscene Contradiction in Microsoft's Layoffs Tally ("Official" Numbers Do Not Add Up)
Notice how they treat "LinkedIn" as separate
Preserving Comments About the Real IBM Before They Get Deleted
IBM in the 1980s is not what it is right now
Cybershow on "Escaping Prisons For Your Mind"
"THE CYBER SHOW: Stealing technofascism's boots, and stomping on its own face with them."
Links 06/07/2026: At Least 20% Staff Reduction in XBox (Microsoft), Taiwan Sees Uptick in Chinese Aggression/Provocation, Senator Rodante Marcoleta Arrested
Links for the day
Confirmed: Microsoft Layoffs Come in Two Waves, Just Like Last Summer
To us, what stands out is the admission from Microsoft that there are two (or more) waves
In Praise of the UK's Stance on Free Speech (but Some Reservations)
At the moment there is a healthy discussion going on with the objective of disrupting attacks on British press
Exposing Corruption at the European Patent Office (EPO), a Call for More Whistleblowers
We predict that, provided enough whistleblowers speak out, António "the unready" won't even finish his current term
Leaving Our Pets for Several Days
This week our pets will be worried that "mommy and daddy" are away
Dating Trees and Dating 'Apps'
several high-profile stories in the news about scandals in "dating apps"
DW Documentary About Julian Assange Turns 2
It was released just days after Assange had turned 53 and about two weeks after he had left the UK
Independent Media is the Only Form of Legitimate Media
Independent media is, indeed, what we need to demand more of
The Story of the European Patent Office (EPO) Wagging the Dog (EU)
The aim of the series is to properly inform the world - not just Europeans - how Europe's second-largest institution is run [...] How did a corporate hub of monopolies become so detached from the Rule of Law?
GNU/Linux Up to New High in Libya, Windows Down to All-Time Low
GNU/Linux touches 5% there, based on statCounter
Links 06/07/2026: Artists Reject Slop (or Even de Facto Bribes to Market/Endorse Slop)
Links for the day
SLAPP Censorship - Part 129 Out of 200: Iranian Tactics
Hunger for revenge compels people to do overzealous, irrational things
Quiet Week
Many in the US are still enjoying an extended weekend
The Media Needs to Speak of Slop as a Climate Issue Like It Did With Bitcoin
But the slop industry keeps paying the media to play along with the hype
IBM's Fall
IBM's fate is closely connected to that of the Free software movement because of the salaries
Social Dialogue at the European Patent Office (EPO) is Dead, the Strikes and Work Stoppage-Like Actions Carry on
What next for the EPO?
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, July 05, 2026
IRC logs for Sunday, July 05, 2026
Links 05/07/2026: Shadows of the Upper Peninsula and 2026 Old Computer Challenge
Links for the day