Microsoft's Next Round of Layoffs Reportedly Happen in November

Microsoft's Next Round of Layoffs Reportedly Happen in November

Microsoft Satya Nadella 310x

The next phase of the announced 18,000 layoffs will impact every division at Microsoft.

ZDNet is reporting that the next phase of Microsoft's planned 18,000 job cuts will happen before the start of the holiday season.

The report is unsure how many of the layoffs are coming in November, but its unnamed sources say company employees will learn the figure in a company-wide memo later this week.

13,000 of the planned 18,000 layoffs happened in July, and most of those cuts were related to Microsoft's $7.2 billion acquisition of Nokia, which was finalized in April. This next wave of cuts will be more evenly distributed, as every division within Microsoft will see reductions in one form or another. The report says that Microsoft is targeting part-time and contract employees (referred to as "contingent" staffers) especially, as it plans to reduce this component of its workforce by up to 20 percent.

With cuts expected in November, Microsoft CEO Satya Nadella is on track to complete all planned layoffs on his planned six-month schedule (July 2014 through January 2015).

Before the layoffs in July, Microsoft had roughly 125,000 employees on its payroll worldwide. Microsoft's last major layoff was in 2009, when it parted ways with 5,800 employees due to the worldwide economic recession.

Source: ZDNet

Permalink

...yet it can afford to purchase Minecraft for an obscene amount?

Though the article does mention that most of the staff targeted are part-time and contract employees, I wonder how Microsfot can believe that this is the correct course of action for themselves. This course of buying properties and releasing people can only lead to ruin, imo. Methinks Microsoft still hasn't come to grips that they forgot the "intellectual" part of intellectual property. I should note, in fairness, Crapcom has done a fantastic job of out-shitting Microsoft on that front...

While those reading the details will note this likely has nothing to do with the acquisition of Mojang/Minecraft (at least i would hope not) I imagine there are a lot of dumb people who will immediately jump onto the hate train and attempt to call bullshit on Microsoft for spending 2.5 billion on Mojang only to then turn around and layoff a good chunk of works before the holiday season.

That said... I will still call bullshit because the acquisition (in my eyes) is still a relatively shortsighted move on their part and I see this as just one step on a long road of bad ideas they'll continue to have over at MS. Then again, the initial announcement of the Xbone still seemed like a dumb idea until they fired that crap PR team and pretty much turned the Xbone into the MSversion of the PS4. lol

CrazyCapnMorgan:
...yet it can afford to purchase Minecraft for an obscene amount?

It's not about just whether you can afford to pay employees or not, it's about whether the asset turnover of those employees is good enough to justify keeping them with the current budget constraints, which could be true or untrue regardless of company's immediate circumstances. So it's definitely possible for them to be spending money on one end, while cutting expenses on the other without contradiction.

Keep in mind I'm not necessarily defending Microsoft's decision here. I have no idea what these employees were responsible for, nor do I know what Microsoft plans on doing with Mojang; but regardless of how much you look down on Microsoft, I have to believe their management knows more about how to manage their own company than a bunch of outsiders on the internet.

I don't have to believe it, but it's not gonna change anything either way. Whatever they're planning for Minecraft better shoot money out of its ass, so they're probably gonna gamble on microtransactions.

CrazyCapnMorgan:
...yet it can afford to purchase Minecraft for an obscene amount?

Though the article does mention that most of the staff targeted are part-time and contract employees, I wonder how Microsfot can believe that this is the correct course of action for themselves. This course of buying properties and releasing people can only lead to ruin, imo. Methinks Microsoft still hasn't come to grips that they forgot the "intellectual" part of intellectual property. I should note, in fairness, Crapcom has done a fantastic job of out-shitting Microsoft on that front...

Yes, well, I've had the same thoughts myself. It amazes me how a company can blow 2.5 billion dollars on an acquisition and then lay people off in massive numbers like it's in some kind of financial trouble.

It's sort of like how galling I find the logic behind how "we need to lay people off because of he economic recession" like adding more poor people to society who can't afford to buy anything is really going to help....

That said, I don't expect things to change. I have my serious doubts about ever seeing another economic boom in the US within my lifetime.

Something tells me that number could have been significantly less if Windows 8 and the xbone sold better. The true question is did anyone on the executive board wearing the decision making pants learn from that.

CrazyCapnMorgan:
...yet it can afford to purchase Minecraft for an obscene amount?

These things confuse me as well, but the reasoning is probably that their budget is massively compartmentalized. Take Pittsburgh public transportaton system that I have used for years on end. They have reduced alot of services, made alot of cuts when they really DO need more coverage. Because while I am simply inconvenienced to the point of anger and irritation, other people have been utterly shafted. So, all while this is going on, how EXACTLY do they fund the thoroughly-expensive drilling underneath the river to extend the subway route (managed by the same company)?

As it turns out, the little shits set aside money for really stupid projects in accordance with plans and agreements made ahead of time. Nevermind that it's boneheaded to the highest degree, it's what they do. Likely, Microsoft has a similar setup where they are basically shafting their workers and buying up expensive stuff in quick strokes. It goes to show that they have about as much regard for their employees as Wal-Mart has for its own. In short, very little. Seriously, what a shit company.

"we would ofc like to keep you all employed but we just paid more than disney did for marvel to buy an internet version of lego so..."

Therumancer:

CrazyCapnMorgan:
...yet it can afford to purchase Minecraft for an obscene amount?

Though the article does mention that most of the staff targeted are part-time and contract employees, I wonder how Microsfot can believe that this is the correct course of action for themselves. This course of buying properties and releasing people can only lead to ruin, imo. Methinks Microsoft still hasn't come to grips that they forgot the "intellectual" part of intellectual property. I should note, in fairness, Crapcom has done a fantastic job of out-shitting Microsoft on that front...

Yes, well, I've had the same thoughts myself. It amazes me how a company can blow 2.5 billion dollars on an acquisition and then lay people off in massive numbers like it's in some kind of financial trouble.

It's sort of like how galling I find the logic behind how "we need to lay people off because of he economic recession" like adding more poor people to society who can't afford to buy anything is really going to help....

That said, I don't expect things to change. I have my serious doubts about ever seeing another economic boom in the US within my lifetime.

Its perfectly possible for a division of company to be loss making while the overall company makes a profit. Why should a company continue to keep a loss making division in operation? Nokia used to be the dominant manufacturer in the cell phone market and most phones made by their rivals used their O/S . They got wiped out by the rise of the smart phone. Nokia was supporting the management structure of the market leader with sales of an also ran. Changes had to made and integrating the logistics and regional management into Microsoft's wider business will save the costs that will keep most of Nokia's employees in a job. Its either some go now or all go later.

Caption for the picture in the article:

"This is how many Christmases we will ruin."

Edit:

albino boo:

Its perfectly possible for a division of company to be loss making while the overall company makes a profit.

Absolutely true. And the opposite is also true. Just look across the trench at Sony. The PS4 is doing pretty well right now, while most of the rest of the company is in the shit.

What a stressful company to work for. They buy an IP on the decline for $2.5b then lay 18,000 people off. They picked a terrible new CEO.

First cut, Mojang.

Eighteen-thousand new Linux users. And quite a few thousand X-Boxes suddenly appearing on eBay and Craigslist.

"So why spend billions on a one-hit developer when you're going to fire people?"

Something something corporate bullshit jargon shareholders

Headline might as well read "Microsoft helps people still on the fence about Xbox One and PS4 make-up their minds." Yeah, I know that this isn't related to the Mojang acquisition, but that is still terrible timing on their part. First they make the controversial decision to buy a company that has already spent the past several years making any profit they're going to make, and not even a week later they're announcing a massive number of lay-offs for November. It doesn't matter if you or I know that the two aren't related, most people are going to look at that and decide "Yeah, I think I'm gonna get the PS4."

Therumancer:

Yes, well, I've had the same thoughts myself. It amazes me how a company can blow 2.5 billion dollars on an acquisition and then lay people off in massive numbers like it's in some kind of financial trouble.

laying people off does not constitute a financial trouble. they usually go hand in hand when financial trouble is there, but it is not required for layoffs. what happens here is microsoft bought Nokia who was run by inside man that intentionally crippled the company. now the company they wanted is theirs but turns out the inside man was a little too good at destroying it and its pretty much falling apart, so they are trying to release anything thats not profitable in the Nokia aquisition and keep the patents (which is what they probably wanted to begin with, that and the name). its basically shamless capitalism, butn ot in a way you think and actually is far smarter than most think.

Edit: looks like most of escapist does not know basic economics. :(

 

Reply to Thread

Log in or Register to Comment
Have an account? Login below:
With Facebook:Login With Facebook
or
Username:  
Password:  
  
Not registered? To sign up for an account with The Escapist:
Register With Facebook
Register With Facebook
or
Register for a free account here