Microsoft cutting up to 10,000 jobs?

[NJ5]

alephnull said:

NJ5 said:

Pete_Beast said:
Someone explain how the weakening dollar actually helps MS? Also, I thought MS wasn't affected by the recession?

Weakening dollar means other currencies are worth more in dollars. Since Microsoft very likely has more revenue than expenses abroad, this means their revenue should be increasing faster than their expenses.

Practically every company is getting negatively affected by the recession. With companies going bankrupt and downsizing, less PCs are needed and therefore less software purchases. Companies are also trying to save money, which will also mean delays or cancellations of XP->Vista upgrades, for example.

 

Hmmm, this argument seems familiar, but everyone seems to have switched sides :)

Most of MS's problems are likely coming from their consulting arm (one of the their cash cows along with office) thanks to the downturn. Also the high profile fiasco with the London Stock Exchange probably didn't help them win many new customers and god only knows how much the six-sigma contract MS had with them adds up to when a major stock exchange is down for 7 hours (and on the day fannie and freddie were bailed out, ouch!).

The slower than usual uptake of vista and office 2008 are probably not helping things. The slow erosion of their consumer desktop market share and the rise of netbooks should all be worrying to them in the long term. It may be that they are in the same position now as IBM was in the 80s.

However, for the forseeable future it's almost incocievable that they would actually post a loss. You may not want to buy any stock, but MS isn't going anywhere.

Did you even read the post I was replying to?

No one switched sides unless you're reading things wrong. I didn't say Microsoft would post a loss. I said they'd be negatively affected which is very different.