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Microsoft to axe 18,000 jobs

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Murphy

Well-Known Member
Microsoft is to cut up to 18,000 jobs marking the deepest cuts in the technology firm's 39-year history.
The bulk of the cuts, around 12,500, will be in its phone unit Nokia, which Microsoft bought in April, the firm said.
Microsoft pledged to cut $600m (£350.8m) per year in costs within 18 months of closing the acquisition.

The cuts are much more severe than the 6,000 initially expected.

The firm employs 127,000 globally, including 3,500 staff in the UK.

http://www.bbc.co.uk/news/business-28348223

It's not specifically Xbox related, but does pertain to the manufacturer. What do you make of this? It was inevitable that some jobs would go following the acquisition of Nokia but this many globally?
 

akhi216

I ain't sign up for that
They probably have to cut jobs to support their low price war on Google's Chromebooks. They will be offering Windows on devices with displays less that 9 inches for free to essentially price match Chromebooks. I figure that given that they make a lot of money from licensing Windows these job cuts are intended to soften the blow long enough for their low price gamble to to pay for itself.

Microsoft's CEO said that he has no plans to ditch Xbox and plans to make it more attractive to buyers.
 

Floydstrife

Well-Known Member
id like to make a mean comment but after taking two years of business management its understandable and nesscuary everyone downsize for the better of the company im sure all of those laid off will get very fine resumes for future jobs
 

Carlos

Owner
Staff member
so many jobs lost so suddenly. what the hell was microsoft thinking
Actually, the question is "What the hell were Microsoft thinking?"

1. Microsoft, over the course of the Xbox/Xbox 360 lifespan, has spent billions of dollars on the brand itself - everything from manufacturing, distribution of it's own games, development of it's own games, building, and buying game studios, developing new technology, and then there's the massive marketing they do all the time. Only one area of their Xbox business is thriving; their innovative Xbox Live initiative.

2. Every disc sold, is at a loss. That's because Microsoft produced, and distributed every disc on a royalty to Sony's thriving Blu Ray technology. The same can be said for the DVD discs; every disc was sold at a loss for Microsoft.

3. Every exclusive is sold to other companies at a "now you're my bitch" kind of loss. That contract with Activision to keep Call of Duty DLC's exclusive to Xbox costed Microsoft a shitload of cash upfront to Activision. Think about it.

4. Those chips in Xbox/Xbox 360/Xbox One? They're the biggest money losers in any manufacturer's nightmare. Unless you know how to price the hardware, there's no real good way to be profitable off hardware at this time. This applies to every hardware partnership or manufacturing they do. Tablets, Windows Phones, PC's, and so on.

5. They're starting to do contracts with cable companies to bring the vision of "TV inside a console." Right now, this is becoming a money loser with the low fan base.

All of this, and more reasons are contributing in Billions of dollars in losses for investors, stakeholders, shareholders, and whatnot - so, to keep everything intact, they had to choose: Cut jobs, or cut features. Microsoft at this point can't afford to cut features because of their commitments. In other words: If they remove the "TV inside a console" features, they're going to cut the contract short, and inspire lawsuits.

Essentially the case of "One or the other."
 

GamejunkieUK

Well-Known Member
Actually, the question is "What the hell were Microsoft thinking?"

1. Microsoft, over the course of the Xbox/Xbox 360 lifespan, has spent billions of dollars on the brand itself - everything from manufacturing, distribution of it's own games, development of it's own games, building, and buying game studios, developing new technology, and then there's the massive marketing they do all the time. Only one area of their Xbox business is thriving; their innovative Xbox Live initiative.

2. Every disc sold, is at a loss. That's because Microsoft produced, and distributed every disc on a royalty to Sony's thriving Blu Ray technology. The same can be said for the DVD discs; every disc was sold at a loss for Microsoft.

3. Every exclusive is sold to other companies at a "now you're my bitch" kind of loss. That contract with Activision to keep Call of Duty DLC's exclusive to Xbox costed Microsoft a shitload of cash upfront to Activision. Think about it.

4. Those chips in Xbox/Xbox 360/Xbox One? They're the biggest money losers in any manufacturer's nightmare. Unless you know how to price the hardware, there's no real good way to be profitable off hardware at this time. This applies to every hardware partnership or manufacturing they do. Tablets, Windows Phones, PC's, and so on.

5. They're starting to do contracts with cable companies to bring the vision of "TV inside a console." Right now, this is becoming a money loser with the low fan base.

All of this, and more reasons are contributing in Billions of dollars in losses for investors, stakeholders, shareholders, and whatnot - so, to keep everything intact, they had to choose: Cut jobs, or cut features. Microsoft at this point can't afford to cut features because of their commitments. In other words: If they remove the "TV inside a console" features, they're going to cut the contract short, and inspire lawsuits.

Essentially the case of "One or the other."

Sony has made mistakes to and is currently in the red with all their divisions losing money except for the Playstation division. They have also had to lay staff off in recent times and even had to sell one of their major office buildings in New York. So yes MS had had to make some drastic decisions to reduce their losses but Sony is no different. That said I don't believe everything you say is true anyway and you're making some unvalidated assumptions. Microsoft as a whole is doing pretty well especially with their other PC software, hardware and services businesses so just because they are reducing the staff in their Xbox division doesn't mean they are doing as badly as you make out.
 

Carlos

Owner
Staff member
Sony has made mistakes to and is currently in the red with all their divisions losing money except for the Playstation division. They have also had to lay staff off in recent times and even had to sell one of their major office buildings in New York. So yes MS had had to make some drastic decisions to reduce their losses but Sony is no different. That said I don't believe everything you say is true anyway and you're making some unvalidated assumptions. Microsoft as a whole is doing pretty well especially with their other PC software, hardware and services businesses so just because they are reducing the staff in their Xbox division doesn't mean they are doing as badly as you make out.
Yes, Microsoft as a whole - is doing well. Their PC software/hardware/services are all doing well for Microsoft because that's their expertise. Video Games is not that.

[That just means they're selling well. I'm just saying that the hardware sector of the company is bleeding money because of the manufacturing/partnerships they have.]

You don't believe what I say because you don't like me, simple as that. Everything I said is true. Go do your research. Microsoft is losing money in every conceivable way [in the Xbox division]. Their only sweet spot, like I said - it's the Xbox Live division. And to be fair, Sony lost money on [PlayStation] hardware during much of it's lifespan until they got profitable through better sales starting from PSX to PS2. Sony was just going through a really rough time with PS3, their mistakes was their fault, but there were some tragedies surrounding the company - everything from economic downturn, to Tsunami, to earthquakes, to riots (DVD manufacturing plant).

And, yes, you're right - Sony had the same problems as Microsoft does right now. Problem is: Microsoft deliberately designed Xbox One to "fail" to evoke controversy on a daily, monthly, and yearly basis until the whole system is a "good investment" for players. That new $399 model is a nice decision and all, but they should've launched that SKU 6 moths ago. Not today. 6 months ago.

Why do you think there was a lot of controversy surrounding Steve Ballmer's "retiring"? Investors wanted him out, but it would mean compromising the Xbox division. Investors said "Kill the Xbox division." Ballmer even made the last speech before retiring, explaining why the Xbox division is a strong bet, and whatnot. Then, Microsoft came out and said "no" to axing the Xbox division. Instead, the new Microsoft enabled the new C.E.O. to improve every part of Microsoft and crowned a new division executive for Xbox.
 
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GamejunkieUK

Well-Known Member
Yes, Microsoft as a whole - is doing well. Their PC software/hardware/services are all doing well for Microsoft because that's their expertise. Video Games is not that.

[That just means they're selling well. I'm just saying that the hardware sector of the company is bleeding money because of the manufacturing/partnerships they have.]

You don't believe what I say because you don't like me, simple as that. Everything I said is true. Go do your research. Microsoft is losing money in every conceivable way [in the Xbox division]. Their only sweet spot, like I said - it's the Xbox Live division. And to be fair, Sony lost money on [PlayStation] hardware during much of it's lifespan until they got profitable through better sales starting from PSX to PS2. Sony was just going through a really rough time with PS3, their mistakes was their fault, but there were some tragedies surrounding the company - everything from economic downturn, to Tsunami, to earthquakes, to riots (DVD manufacturing plant).

And, yes, you're right - Sony had the same problems as Microsoft does right now. Problem is: Microsoft deliberately designed Xbox One to "fail" to evoke controversy on a daily, monthly, and yearly basis until the whole system is a "good investment" for players. That new $399 model is a nice decision and all, but they should've launched that SKU 6 moths ago. Not today. 6 months ago.

Why do you think there was a lot of controversy surrounding Steve Ballmer's "retiring"? Investors wanted him out, but it would mean compromising the Xbox division. Investors said "Kill the Xbox division." Ballmer even made the last speech before retiring, explaining why the Xbox division is a strong bet, and whatnot. Then, Microsoft came out and said "no" to axing the Xbox division. Instead, the new Microsoft enabled the new C.E.O. to improve every part of Microsoft and crowned a new division executive for Xbox.

It doesn't have anything to with whether I like you or not. I don't know you personally so I can't make that judgement. Unfortunately due to your paranoia you seem to have a negative view of me which is your problem and not mine. I post it as I see it and if it was someone else posting the same thing my response would be the same. Like I said you don't know enough about what goes on inside Microsoft to make the statements you have.

Also your post was very one sided and didn't mention all the trouble Sony is on and what measures they have taken to solve their problems. I suggest you get a grip on yourselves and don't automatically assume just because some one challenges you and has a different opinion to you they don't like you. Its not a very mature attitude to be honest and something I suggest you deal with. If that's the way you are in life in general then I do feel sorry for you. Forums are meant for discussion and there will always be differing opinions.
 

Carlos

Owner
Staff member
It doesn't have anything to with whether I like you or not. I don't know you personally so I can't make that judgement. Unfortunately due to your paranoia you seem to have a negative view of me which is your problem and not mine. I post it as I see it and if it was someone else posting the same thing my response would be the same. Like I said you don't know enough about what goes on inside Microsoft to make the statements you have.

Also your post was very one sided and didn't mention all the trouble Sony is on and what measures they have taken to solve their problems. I suggest you get a grip on yourselves and don't automatically assume just because some one challenges you and has a different opinion to you they don't like you. Its not a very mature attitude to be honest and something I suggest you deal with. If that's the way you are in life in general then I do feel sorry for you. Forums are meant for discussion and there will always be differing opinions.
Blab, blah, blab, blah. You're using the same argument, the same speech, and the same bullshit. I don't need to get a grip on myself. I don't assume, I know. You have this habit of trying to respond to me the same exact way each, and every single time. And I am mature, you're the one who's "immature." I gave you the piece of my mind, and I even said that you're right sometimes, but then you have balls, the gall to try and make me look stupid, act like I'm dumb.

I'm not stupid, I'm not dumb, and I don't have any of this paranoia bullshit you're making me out to be.

I don't have to know what's going on at Microsoft to make the statements I make! The articles out on the internet points to Microsoft failing. You just feel like babbling your mouth as usual. If you had done your research, you'd know everything I know now. I have a friend who I argue with all the time, and he's an Xbox guy. I don't attack him because he now does it in a way that's respectful. And likewise he understands that Microsoft is going through a hellish time with Xbox One - for the same reason(s) I described.
 
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