Pressurecast Thirty-Five: Why Is Microsoft Laying Off 18,000 Employees?

Colin and Steve discuss the Microsoft layoffs, Club Nintendo’s abandonment of physical items, and Sting in WWE2K15!

Read Full Story >>
The story is too old to be commented.
JBSleek1642d ago

No it isn't. Anyone with fifth grade reading level could simply look it up and get a reasonable simple answer.

Eonjay1642d ago (Edited 1642d ago )

I imagine its not so "simple" for the thousands of people losing their jobs. I will just let them know that JBSleek said its simple and reasonable. This should make them feel better.

JBSleek1642d ago

"I imagine its not so "simple" for the thousands of people losing their jobs. I will just let them know that JBSleek said its simple and reasonable. This should make them feel better."

I'm sorry I should feel sorry for people....Well I feel kinda sad for the Nokia people but for MS own people I don't care. You not doing your job you get fired. That's life.

Eonjay1642d ago (Edited 1642d ago )

Not withstanding personal attacks, the answer to your question has to do with the recent reorganization following the acquisition of Nokia and the closure of several areas such as Xbox TV. Approximately 12,000 employees are said to be release from the Nokia side while 6,000 are from the Microsoft side.

Funny thing is, we should have seen this coming. Since when have one of these mergers/acquisitions not resulted in mass layoffs.

fonger081642d ago

Because buying Nokia hasn't exactly paid off...

JBSleek1642d ago

What? The Nokia purchase just went through...

fonger081642d ago

Back in April they closed it, and Microsoft isn't going to see any return on that 7.2billion anytime soon.

Mikefizzled1642d ago

They bought Nokia 3 months ago, How can this sort of judgement be made already?

JBSleek1642d ago

Your statement is still stupid. The 12,500 Nokia layoffs was to stop layover in the company not because it isn't going to pay off.

Also MS will recoup that money easily. It does almost three times that money per quarter.

Dehnus1642d ago

Bullshit! Sorry but it is.
After a merger you always lay off people, that is a sad fact but a fact nonetheless.

Many positions are now redundant. For instance you do not need 2 HR managers at the same locations.

+ Show (1) more replyLast reply 1642d ago
Tzuno1642d ago (Edited 1642d ago )

Well, to reduce costs DUH.... 18.000 fired people X "insert salary here" per month= "X" amount of money per year, put a few years here and there to fill the loss of money in a department. You don't understand nothing from my comment, do you? :)

STK0261642d ago (Edited 1642d ago )

Microsoft has grown too big for its own good, and it has to cut off some fat to be more agile as a corporation. Microsoft is competing in multiple quickly evolving markets, and it needs to be able to respond and adapt at a fast rate. Just because you have billions, doesn't mean you can afford to keep unneeded assets.

It obviously sucks for all those affected, but for Microsoft itself, it's a very healthy thing to do. Most major corporations go through these purges at some point.

You also have to factor in the change of CEO; Ballmer has worked hard over the years to make Microsoft a hardware and services company, the new CEO might not have the same vision for Microsoft's future. The Surface line seems to be safe for now, and so is the Xbox division, but we might never see a Microsoft Lumia after all.

mcstorm1642d ago

I agree I think Microsoft were always laying off a log of Nokia staff from the start as they have there own hardware team inplace and there was always going to be over lapping jobs.

People seem to forget that 14 thousand of the 18 thousand jobs were from Nokia its only another 4 thousand that was in house that is going.

Microsoft have a new CEO too that is coming up to 6 months in charge and he was always going to make changes and look where the last CEO went wrong and one thing was the messages that were let out to the public about Windows, Surface xbox ect.

I think this new move as well as Microsoft buying Nokia going forward will see Microsoft start to grow again.

Funantic11642d ago

It's cool when Sony lays off and gives the head man a pay cut.

1886afc1642d ago

i know right, dont remember anyone giving a fuck when that happened.

Show all comments (18)