It looks like the fantasy that tech was going to pull everything out (did anyone really believe this) has been torpedoed twice, is dead in the water and is listing 12 degrees to port.
Microsoft Corp. will cut 5,000 jobs, or about 5 percent of its workforce, as the global recession eats into demand for software.The reductions, Microsoft's first companywide firings, will take place in nearly all areas, including research, sales and marketing, the company said today in a statement. The measure, announced with the company's second-quarter earnings, will save $1.5 billion, Microsoft said.
Chief Executive Officer Steve Ballmer is under pressure to reduce costs as sales growth dries up in what may be the worst recession since World War II. The company's Windows division, which accounts for about a quarter of sales, is suffering after personal-computer shipments rose at the slowest rate in six years in the fourth quarter.
Doing the monkey-boy dance isn't likely to save things for Microsoft, which, like it or not, faces increasing irrelevancy and timing of a product cycle that isn't doing it any favors. Vista is a disappointment and Windows 7 isn't likely to help much. There are just so many new tricks you can squeeze into an operating system and until Windows cooks perfect toast in the morning, we've hit the point of diminishing marginal returns. This, combined with the Microsoft-Intel chain gang effect puts old Steve in the spotlight while chained by the ankle to Woody Allen. There are fates worse than death, but not many.
Microsoft Cuts 5,000 Jobs as Recession Curbs Growth [Bloomberg]
Posted by guest , Jan 22, 2009 10:03AM
Only EP can write so eloquently.
You are in for a great career, darling
Posted by Clown Capital , Jan 22, 2009 10:06AM
Gates must have Ebola.
@1
Why don't you just put your whole face in her snatch why dont ya? Freakin' queer...
Posted by guest , Jan 22, 2009 10:06AM
I was wondering when the flood gates were going to open even wider.
Posted by guest , Jan 22, 2009 10:08AM
@2
Gates is free of the contagion for now.
Posted by guest , Jan 22, 2009 10:10AM
AND NOW... LADIES AND GENTLEMAN.... STEEEEVE BALLLMER.... "Get on you feet.... "
Posted by guest , Jan 22, 2009 10:10AM
Here's the thing: Does anybody really need Vista, let alone Windows 7? Win XP works like a dream on my home machine, why would I need to upgrade?
Apple has the far superior business model. They sell a better OS with brilliantly designed machines.
Posted by guest , Jan 22, 2009 10:11AM
EP you are right. MSFT is not in the vanguard to 'tech' any more, but is the old legacy unwieldy behemoth.
MSFT is simply too big and entrenched to show any meaningful growth. Why have Bill Gates and others jumped ship? Because they realize the company is coasting along the Windows franchise.
The problem for MSFT is that it will have trouble competing in the future with 'cooler' products like what Apple offers and cheaper products like Linux and open source.
MS needs to reinvent itself - maybe split off or wall off the legacy businesses with zero growth - and move into new areas. The Yahoo deal was a nightmare thanks to Jerry, but maybe this is a good time and price point?
Posted by guest , Jan 22, 2009 10:12AM
@6
god. It doesn't take much for the Apple apologists to show their faces. Please go back to praying for skinny's iLiver.
Posted by guest , Jan 22, 2009 10:14AM
6 True in the most superfical way. Apples are slick, well designed, easy to use. But not in fact very powerful. And therefore great for home use, but don't try that at the office, unless its three architects in a loft in Billburg.
Posted by guest , Jan 22, 2009 10:16AM
I love my mac, but Windows 7 is a solid piece of software that offers a host of improvements over Vista and XP. DMR really hasn't been reached for this OS.
Posted by Anal_yst , Jan 22, 2009 10:17AM
$300,000/employee? WTF and they say Wall Street employees are (were) overpaid???
Posted by guest , Jan 22, 2009 10:23AM
@11
Good coders should be paid more than paper shuffling crooks
Posted by Gordon Gekko , Jan 22, 2009 10:24AM
@1
Bess > EP
Posted by guest , Jan 22, 2009 10:28AM
@12
The paper shuffling crooks will simply send your job somewhere else where they 'believe' it can be done cheaper and more effectively. Forget about whether that's the reality since they would have jumped ship before the truth sets in.
Oh, and if you think 'coding' is the only skill required you're a moron.
Posted by Seaman Bodine , Jan 22, 2009 10:29AM
MSFT is not a technology company - they are a utility. They should pay a fat yield, and pasture windows until it's finally displaced by a GOOG browser that does everything.
Posted by Anal_yst , Jan 22, 2009 10:29AM
@12
I don't necessarily disagree with you, however, methinks you might be on the wrong website
Posted by guest , Jan 22, 2009 10:31AM
Using XP SP2 on all home/office machines. Completely content and am resolved to skip Vista entirely. That said, I know a lot of people, including some Mac guys and some real Vista haters, messing around with the Win 7 beta and they like it a lot. I don't have enough time to toy with betas so I'm waiting.
Posted by Seaman Bodine , Jan 22, 2009 10:37AM
@17
yeah - i can telly you're really busy
Posted by guest , Jan 22, 2009 10:39AM
15 is right: MSFT is a bond. They have a lot of cash and exact a fee from computer buyers and firms.
What kills growth is the lack of a reason to upgrade. Many firms (mine included) will skip Vista altogether.
That's pushing them to software-as-a-service to keep revenues pumped up, but even Apple is having trouble pushing that - and it could move mainstream users toward applications on the browser or open source.
Posted by Anal_yst , Jan 22, 2009 10:52AM
FWIW, after about 6-7 yrs of xp PC's, i recently switched to a macbook, and besides some minor complaints (backspace is mad slow, no delete key, can't tab through options in pop-up boxes, re-learning/assigning excel shortcuts, etc), I couldn't be happier. MS Office, occassional desktop publishing, messenger (aim/yhoo/msn/etc), media management/playback, and web browsing, that's like 98% of computer usage these days, and whoever the idiot was that commented about Macs not being powerful, uh, yea, please promptly remove your head from your ass, kthnx.
Posted by guest , Jan 22, 2009 10:56AM
20 They're not powerful in the sense that they can't efficiently be networked in the thousands, like a PC can. For the fooling around you're doing at home, they're sufficiently powerful.
Posted by guest , Jan 22, 2009 10:57AM
South Korea's "prophet of doom" blogger indicted.
South Korean prosecutors indicted a blogger on Thursday who had warned of financial doom for the country with critics saying he was targeted because his gloomy forecasts upset the government battling an economic downturn.
http://www.reuters.com/article/worldNews/idUSTRE50L1YM20090122?feedType=RSS&feedName=worldNews&rpc=22&sp=true
and
http://news.yahoo.com/s/ap/20090122/ap_on_re_as/as_skorea_blogger_1
Posted by guest , Jan 22, 2009 11:00AM
@2 is queerly eloquent
Posted by Seaman Bodine , Jan 22, 2009 11:01AM
@21
that's like saying you can't get hard for rosie odonnel cause rosie perez is hotter, when for less money, you can spread eagle tera patrick
rosie odonell = mac
rosie perez = windows
tera patrick = linux
just talking networking, yo
Posted by guest , Jan 22, 2009 11:25AM
@21
Windows networking is a nightmare. You must be making money doing it to say anything good about it.
Posted by guest , Jan 22, 2009 11:32AM
25 Must be why there are so many networked Macs - NOT
Posted by Seaman Bodine , Jan 22, 2009 11:38AM
@26
douche
the OS enables the networking
the reason PCs are used is that they ae cheap - not married to an OS (vs. mac)...so you can pound out linux
nobody networks windows - that's fucking gay
in this defining moment
Posted by guest , Jan 22, 2009 11:44AM
MSFT is still in there. They have songsmith! It's amazing. so revolutionary...you just sing into and it creates music...just like that.
http://www.youtube.com/watch?v=k8GIwFkIuP8
Posted by guest , Jan 22, 2009 1:00PM
@5: Nice.
@9: "Apples are slick, well designed, easy to use. But not in fact very powerful."
What a crock of shit. Clearly you're an idiot who's still caught up doing things the hard and slow way. News-flash: simple doesn't mean they're less powerful. America agrees, retard.
Posted by guest , Jan 22, 2009 1:33PM
@20, Macs also aren't great with most good computer games; have to stick to the PC for that if only so you can upgrade hardware easily
Posted by guest , Jan 22, 2009 3:02PM
@ All
MSFT needs to turn Balmer to the wolves. His meaningless gestations as CEO are not enough to get the stock and business back in line. He needs to go and new blood needs to be brought in. Firing talent in this market is a sad thing to do for tech workers. MSFT should tack the waters after IBM and build a service division, forget about YHOO, and go after real growth opportunities like bringing back the talent that has left their campuses. What else is a cash war chest for if not for times like these to gain market share against your competitors.
Posted by guest , Jan 22, 2009 3:06PM
@ All
MSFT needs to turn Balmer to the wolves. His meaningless gestations as CEO are not enough to get the stock and business back in line. He needs to go and new blood needs to be brought in. Firing talent in this market is a sad thing to do for tech workers. MSFT should tack the waters after IBM and build a service division, forget about YHOO, and go after real growth opportunities like bringing back the talent that has left their campuses. What else is a cash war chest for if not for times like these to gain market share against your competitors.