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Forums - Microsoft Discussion - Microsoft cutting up to 10,000 jobs?

^^^ What he said.

Mini-Microsoft is a good source for "from the trenches" info as he is from the rank-and-file employees. He never had any access to strategic info from Microsoft.

Will there be some people let go? Probably, on a very selective and spotted basis.

10,000? No way. And certainly the way you'll learn it will not be through a blog.



Prediction made on 11/1/2008:

Q4 2008: 27M xbox LTD, 20M PS3 LTD . 2009 sales: 11M xbox,  9M PS3

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The economy isn't only having an effect on Sony then.



I'll believe it when I see it...M$ hasn't missed any numbers, or seen any downturn in revenue estimates, but it's on out of the realm of possibility for them to launch a pre-emptive cut...my question would be where. From the last report, there were no reported lagging divisions to justify a 10,000 person cut, for a company with 91,00 employees...slicing over 10% of your workforce, when you've not missed any quarterly profit targets, and you're in a battle to retain good people against google would be huge. The morale hit alone would be titanic, but stranger things have happened.



"...You can't kill ideas with a sword, and you can't sink belief structures with a broadside. You defeat them by making them change..."

- From By Schism Rent Asunder

heruamon said:
I'll believe it when I see it...M$ hasn't missed any numbers, or seen any downturn in revenue estimates, but it's on out of the realm of possibility for them to launch a pre-emptive cut...my question would be where. From the last report, there were no reported lagging divisions to justify a 10,000 person cut, for a company with 91,00 employees...slicing over 10% of your workforce, when you've not missed any quarterly profit targets, and you're in a battle to retain good people against google would be huge. The morale hit alone would be titanic, but stranger things have happened.

 

MS won't cut 10,000 people.  I think they will cut the fat, but MS would do that anyway because they know how to run a sound business.

A few thousand at most will be cut... and nothing more.  MS has way too much money in cash reserves to be worried.  They'll just play the smart role and get rid of the excess that's not needed (which I believe they would have done anyway).



MarioKart:

Wii Code:

2278-0348-4368

1697-4391-7093-9431

XBOX LIVE: Comrade Tovya 2
PSN ID:

Comrade_Tovya

heruamon said:
I'll believe it when I see it...M$ hasn't missed any numbers, or seen any downturn in revenue estimates, but it's on out of the realm of possibility for them to launch a pre-emptive cut...my question would be where. From the last report, there were no reported lagging divisions to justify a 10,000 person cut, for a company with 91,00 employees...slicing over 10% of your workforce, when you've not missed any quarterly profit targets, and you're in a battle to retain good people against google would be huge. The morale hit alone would be titanic, but stranger things have happened.

This. The most interesting thing is - MS has misses, but not many. Yeah, they've had their turds too, but for the most part, MS has dominance and made money off the dominance. MS has been profitable for a few quarters now. With the RROD paid off almost a year and a half ago - maybe longer - they are focusing on raising those profit margins.

Sony has been bleeding since a few quarters after the PS3 came out. The PS3 was selling so well they waited nearly 2 years to make a price cut. Even with RROD, Sony has been beating the 360 since it came out. Now, Sony is looking to dethrone the Wii. Sony has the Wii right where they want 'em. - STOP. Let a PS3 fanbot tell it - MS has earn one thing this gen - cred. They can roll out the 720 with proven IPs - and further bolster LIVE and streaming movie services.

They are rarely off in their numbers - and we'd be hearing more than rumblings from the MSM.

 



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Its starts with rumours, doesn't anyone follow the stock market.

The rumour is simply to calm nerves, make it seem less shocking, but happening just before Christmas, well that is a real harshly timed announcement.



“When we make some new announcement and if there is no positive initial reaction from the market, I try to think of it as a good sign because that can be interpreted as people reacting to something groundbreaking. ...if the employees were always minding themselves to do whatever the market is requiring at any moment, and if they were always focusing on something we can sell right now for the short term, it would be very limiting. We are trying to think outside the box.” - Satoru Iwata - This is why corporate multinationals will never truly understand, or risk doing, what Nintendo does.

megaman79 said:
Its starts with rumours, doesn't anyone follow the stock market.

The rumour is simply to calm nerves, make it seem less shocking, but happening just before Christmas, well that is a real harshly timed announcement.

 

Sure, possible, but it's also possible it just another absurd rumor as well...

You know, like the one that said that the Wii would be Nintendo's demise, or that UFOs are being held at area 51.

The world is full of rumors, day is and day out.  You might find it hard to believe, but some people actually start rumors because they don't like a company and they want people to perceive that company like it's weak...

Say like, investors (so they can buy that stock cheaper) or competitors (to cause a tremor in sales).

Rumors happen everyday of every week or every year.  9 times out of 10 they are bogus.

But even if it's true, it has nothing to do with a weak MS.  It has everything to do with strategic positioning for a potential problem down the road.  If MS cuts any employees at all, it's only due to foresight for what may come later down the road.  It proactive planning versus reactive scrambling.



MarioKart:

Wii Code:

2278-0348-4368

1697-4391-7093-9431

XBOX LIVE: Comrade Tovya 2
PSN ID:

Comrade_Tovya

Rumours in the business world are worth SHIT LOADS of money though.

MS stock went up i bet bcoz of this rumour



“When we make some new announcement and if there is no positive initial reaction from the market, I try to think of it as a good sign because that can be interpreted as people reacting to something groundbreaking. ...if the employees were always minding themselves to do whatever the market is requiring at any moment, and if they were always focusing on something we can sell right now for the short term, it would be very limiting. We are trying to think outside the box.” - Satoru Iwata - This is why corporate multinationals will never truly understand, or risk doing, what Nintendo does.

megaman79 said:
Rumours in the business world are worth SHIT LOADS of money though.

MS stock went up i bet bcoz of this rumour

 

Speaking of which, I gotta buy some Apple stock...

 

GUYS STEVE JOBS HAS DIED! MY COUSIN WORKS AT THE HOSPITAL AND TOLD ME!





Current-gen game collection uploaded on the profile, full of win and good games; also most of my PC games. Lucasfilm Games/LucasArts 1982-2008 (Requiescat In Pace).

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.

 



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