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  Microsoft to Cut About 60 Workers, Revamp Interactive-TV Unit
Time: 08:39 EST/13:39 GMT | News Source: E-Mail | Posted By: Byron Hinson

Microsoft Corp plans to lay off about 60 people and reorganize its ailing interactive-television unit, which is shifting gears to focus on new types of services, Wednesday's Wall Street Journal reported. The Redmond, Wash. , software company, which rarely lays off employees, also said separately that more than 140 people who were employed by its now-shuttered UltimateTV unit will likely be laid off. While Microsoft 's interactive-TV operation builds software for set-top boxes deployed by cable-TV companies, UltimateTV is a different device that Microsoft still sells through satellite operator DirecTV, a unit of Hughes Electronics Corp. Microsoft announced plans to disband UltimateTV as a business unit in January; only 25 of the 168 employees whose jobs were cut found other positions at Microsoft after a three-month "redeployment" process that ends today, a Microsoft spokeswoman said.

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#1 By 3 (62.253.128.4) at 4/24/2002 10:36:13 AM
If anyone wants to fish around and make an informative article - it can be posted here.

#2 By 135 (208.50.201.48) at 4/24/2002 12:40:33 PM
Microsoft expanded in a large number of different directions in the dot-com era, because of the hype they were as unsure of the future as anyone and wanted to hedge their bets.

Certainly the situation with UltimateTV is up in the air, but that market has been a dog.

Tivo is also doing quite poorly. They only have around 400,000 subscribers, despite having sold those units for about 3 years now.



#3 By 2960 (156.80.64.135) at 4/24/2002 2:11:42 PM
I have a DirecTV/UltimateTV box. Once you have a DVR, you never look at television the same again.

When I bought mine, I had a choice between Tivo and UTV. I bought UTV for two basic reasons.

1. It was $50 cheaper.

2. Tivo was having financial problems. I figured that if there was a shakeout in the DVR industry, who better to run with than Microsoft, right? Surely Microsoft would be the survivor!

LOL! What a fool I was!

Now, to be honest UTV service has done nothing but improve since this announcement was made in January.

About 3 weeks ago, Microsoft pushed down a major software update that was pretty amazing. Major, MAJOR changes in programmability and performance. It has made UTV far more pleasant to use.

I don't know who is doing the UTV updates these days, but they are doing a fine job at it.

TL

#4 By 135 (208.50.201.48) at 4/24/2002 2:46:04 PM
My DVR is a WinTV card with Snapstream software. Works pretty well, and cost much less than Tivo with no subscription charge. :)

#5 By 4209 (163.192.21.2) at 4/24/2002 3:03:41 PM
How many people does MS employ? If then compare the loss of 60 of them, then it is small potatoes and who really cares. Look at the HP Compaq merger then will lose more than 20,000 employees, now that is a sizeable layoff.

#6 By 3339 (65.198.47.10) at 4/24/2002 9:12:42 PM
Mctwin, there are a little over 600 people in this division so it's about 10% of the Web TV/Ultimate TV/MSN TV/Whatever it'll be called next week division's workforce. Why include MS's entire size? This is about the effect that it has to this initiative; these people do not contribute to other divisions of MS (at least not worth speaking of). What is your point about comparing it to a synergy-less mega merger that is trying to kill itself? Why not just compare it with the U.S. new jobless claims rate? Is it a larger layoff than the average for the whole U.S. economy? Yes, it is--I haven't seen these numbers in about a month or so, but I think it's back below 5%.

#7 By 4209 (163.192.21.2) at 4/25/2002 9:02:06 AM
My point was just MS laying people off, really not a big deal with there size. Although I did not think about putting people in there divisions. So I was wrong there. Of course I don't normally thing of MS even having the TV division. They are so big and into so much shit, I am waiting for them to start making the cars that Walmart is going to sell. That will probably be there next venture.

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