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

Libya's Share on the Web: 5.2% GNU/Linux
GNU/Linux has hit an all-time high there
Codecs and Software Patents - Part VI - The European Patent Office, Nokia, Microsoft, Sisvel, and More
Whatever Nokia used to be, it's certainly not an ally and a lot of the turmoil at the EPO is the fault of companies like Nokia
 
Links 11/05/2026: The Solicitors Regulation Authority (SRA) Admits It Only Reacts When It's Too Late (Damage Already Done), Ombudsman’s Animal Cruelty HK Report
Links for the day
If It Takes You a Second to Serve (or Receive) a Page, That's Definitely Too Slow
For speeds at milliseconds (e.g. for pages to fully load in a tenth of a second) the pages must be ready to be sent as soon as they're requested
It's Not About Speed, It is About Patience and Adherence to Truth, Principles, Scientific Integrity
attacks on us only ever made us stronger - a lesson that our adversaries have learned the hard way
Cyber Show Does it Like Techrights: Static and Gemini Protocol as 'First-Class Citizen'
HTML and GemText (over Gemini Protocol) would be rendered in tandem
SLAPP Censorship - Part 73 Out of 200: Microsoft's Graveley and Garrett Remain Closely Connected in May 2026 ("Tag-Teaming" Against Bloggers in Another Continent)
The phrase "judge a person by their friends" seems applicable here
Discussions About When the Axe Falls at IBM/Kyndryl (11,000 Layoffs Estimated)
"Kyndryl restructuring should reduce overhead functions and reduce the number of managers that lack technical knowledge"
A World After Microsoft (and GAFAM) and After GitHub Shuts Down
the only growth area is debt
Fake News, Propaganda, and Misinformation: Microsoft Investing Money It Does Not Have in "Hey Hi" (for "Entertainment Purposes" Only)
This will not end well
Today the Whole European Patent Office (EPO) is on Strike and Next Monday an Even Bigger Strike
the media refuses to cover these and is thus complicit
The Corrupt Lecture the Non-Corrupt - Part IXX - EPO Management Speaks of Reputation and Integrity While Putting Cocaine Addicts in Management
If the EPO values its "reputation", then it needs to start by ousting the management
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, May 10, 2026
IRC logs for Sunday, May 10, 2026
Links 11/05/2026: Security Breaches, Politics, and Energy Crunch
Links for the day
Gemini Links 10/05/2026: "Accidental Cameras" and "Addictive" Interfaces in Social Control Media
Links for the day
Codecs and Software Patents - Part V - A Reminder That GAFAM and the European Patent Office (Which Serves American Monopolists) Do Considerable Harm to the Commons and Culture
some 'breaking' developments
Gemini Links 10/05/2026: Inkscape, Guix, and Alhena 5.5.8
Links for the day
The "Alicante Mafia" at the European Patent Office (EPO) Experiments With New Methods for Crushing Industrial Actions
Open letter to VP1 and the COO [...] What does this tell us about the status quo at the European Patent Office, Europe's second-largest institution?
The Corrupt Lecture the Non-Corrupt - Part XVIII - "The European Patent Office (EPO) has a zero-tolerance policy for fraud" (except when managers do it)
The guidebook of the EPO says fraud is not to be tolerated, but who enforces or revisits such "Red Lines"?
Links 10/05/2026: Hantavirus Brings Back 'Contact Tracing' Surveillance, "Staple Food Prices Soar in Iran"
Links for the day
Microsoft XBox Staff Know They're in Trouble, They Try to Unionise Ahead of Mass Layoffs
As the slang goes, it's going to be a "bloodbath"
Links 10/05/2026: Fake Suicide Notes and New EU Restrictions on Slop
Links for the day
SLAPP Censorship - Part 72 Out of 200: Microsoft's Graveley and Garrett Signed Documents That Hold Them Accountable to Truth and Liable for Lies
Such collaborations are unsavoury and apparently unprofessional, too
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, May 09, 2026
IRC logs for Saturday, May 09, 2026
Gemini Links 10/05/2026: Travelling to Van and "Dark Mode" as Passing Fad
Links for the day
IBM's Kyndryl Holdings Inc Sank 70-75% in 'Value' in 10 Months, Will IBM Follow?
Kyndryl Holdings Inc now has a debt considerably higher than this company is said to be 'worth'!
Belated Sovereignty: GNU/Linux in Iran Skyrockets to 6% Amid Armed Conflict
unless they're truly in control of their networks, hardware and software, somebody else can control them
Gemini Links 09/05/2026: Liberation, The Nocturnals, Rediscovering Internet Radio, and More
Links for the day
Links 09/05/2026: Kremlin’s Biggest Day of the Year and FBI's Attack on the Media (to Save Face)
Links for the day
Google is "Bullshit"
Fix your slop, Google. It's broken.
SLAPP Censorship - Part 71 Out of 200: 5RB Barristers Made Tens of Thousands of Pounds by Changing From Plural to Singular for Microsoft's Graveley and Garrett
Could not even get the client's name right
Links 09/05/2026: "Grand Theft Oil Futures" and Mass Layoffs at Verizon
Links for the day
Gemini Links 09/05/2026: Inkscape "Copy Text Style" and NomadNet
Links for the day
The Corrupt Lecture the Non-Corrupt - Part XVII - European Patent Office (EPO) Management Not Sharing Responsibility for Financial Resources
For those who wonder, EPO strikes are still going on
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, May 08, 2026
IRC logs for Friday, May 08, 2026