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Analyst: Microsoft staff cuts would be "healthy" | |
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| Time: 23:58 EST/04:58 GMT | News Source: Seattle PI | Posted By: Kenneth van Surksum | ||
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Responding to unsubstantiated rumors of possible Microsoft lay offs, Oppenheimer & Co. analyst Brad Reback wrote in a report Monday that lay offs at Microsoft would be "well-received" by Wall Street and "signal that profitability is more important than revenue growth during this very difficult time."
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| #1 By 23275 (71.91.9.16) at 12/24/2008 12:18:31 AM |
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bull
I have one thing to say about this sort of thing: "You go, we go." Simply, I would go before a single person were let go due to economics. As an observation, Pres-elect Obama was going on the other day about "social responsibility" - he meant well, but it crawled all over me... you see, corporations contribute about 16% of the tax receipts in the US and they employ about an equal percentage. Small business guy like myself employ most of the people and pay an overwhelming percentage of the taxes. So it made me sick to hear a lecture on social responsibility from a guy that has never made a payroll in his life and sicker still to hear and see so much noise and the economic nightmare that the 16% has caused the rest of us. The deal is real simple... small business guys love their people and we'd rather cut our hearts out with a spoon than let anyone go - especially when times are tough. So hearing a lecture on social responsibility is tough to hear when as I do, 100% of all benefits are paid, as is transportation, communications, professional equipment - and on top of well above market salaries. I'm not unique at all - MOST small business guys go out of their way to take dang good care of the wonderful people who choose to work with us. So the idea of MS laying people off to please Wallstreet makes me sick for a lot of reasons - nt least of which is the invitation it provices to Pres-elect Obama to lecture us about our responsibilities.... "Just GAK" Oh and the charities and communities we all support and the businesses so many of us are letting slide on payments... you just have to know how insulting all this is. I'm writing a big fat blog post about it and I hope the new Pres pays attention. |
| #2 By 82766 (122.107.48.75) at 12/24/2008 5:32:04 AM |
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I suggest people read through the Mini-Microsoft blog ( http://minimsft.blogspot.com/2008/12/rumors-of-upcoming-microsoft-cut-backs.html ) about this topic. There are LOTS of Microsoft staff talking about this topic in detail.
My personal view... Obama's got nothing to do with/has no influence on Microsoft laying off staff and I doubt that Microsoft is doing this just to please Wall Street either. They doing it to reduce any projected losses and to protect themselves against the global economic colapse that is happening all around us. Unisys layed off 1500, Sony recently fired 16000, all the big corp's are firing staff to protect their bottom line... This post was edited by MyBlueRex on Wednesday, December 24, 2008 at 05:36. |
| #3 By 23275 (71.91.9.16) at 12/24/2008 10:12:16 AM |
| #2, You're right about all that, but it did not make the President-elect's lecture any less sickening to me. You see, where do you think he will go for more revenue to make all these jobless people whole again? He come right down to my office and home and whack the snott out of me and every other small business person there is with direct and in-direct tax increases. Insurances of every type will go up; interchange fees on circuits will go up; interstate commerce value add tax will go up and on and on.... |
| #4 By 15406 (216.191.227.68) at 12/24/2008 11:56:12 AM |
| #3: You'd rather he went and started a few foreign wars over nothing and added to your multi-trillion dollar debt? Maybe I don't get the American mindset, but you sound greedy like you don't want to pay the cost of helping your own country. Your gov't has dug a rather large hole for you over the past decade. Where is the money going to come from to dig you out? Unless there's some global nation-state lottery I'm unaware of, the money is going to have to come from the people, and it's going to be in the form of taxation. |
| #5 By 8556 (12.210.39.82) at 12/24/2008 12:37:07 PM |
| It is up to MS to determine if and when staff cuts will be healthy or not for them. Any idiot can say that staff cuts reduce cost without knowing what the company plans are or who or what programs to cut. From the same analyst: "half of the worlds population is below average in intelligence. We need to fix that problem." |
| #6 By 17855 (205.167.180.132) at 12/24/2008 1:12:34 PM |
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#4: 3,000 people lost theyr lives in a viscious attack on a national landmark, and thats nothing? Someone. anyone that thinks they can stand up to American justice needs to think again.
Spare me the response. |
| #7 By 1896 (74.166.235.69) at 12/24/2008 1:57:14 PM |
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#6 The problem is that almost other 5000 US Citizens lost their lives invading a Country that had nothing to do with the attack to the Twin Towers, specifically Iraq.
As far as I know the responsible of the attack is still around. And please refrain to start with fighting tiranny; when Saddam Hussein was still an assett Washington sent a postman called Mr. Rumsfield to deliver satellite maps of Iranian positions to the Dictator generals. Wars have always, are and will always be started and fought for profit, every other reasons are marginals. |
| #8 By 15406 (216.191.227.68) at 12/24/2008 2:18:42 PM |
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#6: You've really got to stop watching Fox news. btw how many innocent Iraqis have been killed by "American justice"? More than 3000? More than 10,000? Just asking. My comment my directed at Ketchum who was wailing that big, bad Obama is going to undo all the good Bush has done over the past 8 years.
#7: Thank you. I couldn't have said it better myself. |
| #9 By 9589 (76.4.23.8) at 12/24/2008 3:31:19 PM |
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Reduction in force is not cheap. Microsoft would have to spend millions to get a substantial reduction. They are reticent to do that when that same force is their intellectual property. In fact, it walks out the door each and every day at 5:00PM. That it comes back the next morning and helps ring the register of one of the biggest money making machines on the planet is a testament to how Microsoft treats their people.
Typically, what a company will do and Microsoft is hinting at is put a hiring freeze on and reduce by attrition (people retiring and otherwise leaving for whatever the reason). That is the least costly and least disruptive. But let's say they go ahead and reduce their head count per Wall Street wishes. Then, the economy picks up and those that they fired have to be hired back at then higher market prices. They end up paying nearly double (the reduction in force costs + bonus hiring fees + elevated salaries). That is if they can get the people they need at all. Not every idea borne on Wall Street is a good one as we have seen over the last several years . . . In regards to the coalition war we are fighting, it is Obama's to lose. Notice, that his first priority is "fixing" the economy. And, a host of other priorities for the first 100 days, but not one mention of what his plans are on "ending" the war. Oh, wait a minute. He has said that he will keep the same team in the DoD to wage it. Yeah, that sounds like a plan to end it in 16 months - a campaign promise as I recall. Liberals, don't be surprised if he continues much of the same policies of the Bush administration for much of the same reasons - our national survival and the continued warning to any and all that if you screw with the US you will surely reap the whirlwind. We will be in the Middle East for a generation or more regardless of the political party in power. What won't be surprising is that you liberals will suddenly be OK with it (much like you were when Clintoon was prez) and will not go over the deep end with OBS (Obama Derangement Syndrome) like you all have had with BDS (Bush Derangement Syndrome) for the last eight years. |
| #10 By 1896 (74.166.235.69) at 12/24/2008 5:06:39 PM |
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#9: The US survival will be assured fixing the infrastructure and the basic economic of the Country not starting wars in order to boost profits for companies belonging or controlled by friends of friends.
Also a not so manicheistic approch to discussion would really be helpful to improve your understanding of the complexity and nuances of geopolitic; your actual approach could work well in a Fox News watchers environment but nothing above it. Finally if Mr. Obama would continue along the same line of Mr. Bush policies I am afraid you will all be bankrupted by the end of his first term. This post was edited by Fritzly on Wednesday, December 24, 2008 at 17:07. |
| #11 By 23275 (71.91.9.16) at 12/24/2008 5:51:56 PM |
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#4, Are you kidding me? Greedy? I pay 72 cents of every dollar in one form of tax or another - and without any need for Obama to encourage me, I support hundreds of people and 35 charities locally and around the world. I don't even claim those donations on my tax returns.
The bit that galls me is Obama's preaching to people that really don't need any preaching to at all. For far longer than he has been alive, we've been pouring on support and giving each and every day to make our country and the world a better place. And take care of my country? I fought for this country and I bled for it. Now go wash that mouth of yours out - it's stinking up the joint. |
| #12 By 1896 (74.166.235.69) at 12/24/2008 7:38:12 PM |
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#11: You know Iketchum, I disagree almost completely with your opinions and political views and I do not know you at all, still, do not ask me why because I do not know why, but I am sure that you really do what you say and you really believe that many others do as well.
Well, you and the few others like you, no matter what the political orietation, that believe and care are, unfortunately, on the way of extinction; paraphrasing Evola you belong to a "Solar society" which is disappearing to make room to a "Merchant" one. I am relieved that there are still people like you inspiring me respect, regretfully there are less and less... but this is part of human history. Best wishes for a Merry Christmas and Happy New Year everybody. Over. |
| #13 By 23275 (71.91.9.16) at 12/25/2008 12:28:29 AM |
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#12, Thank you, very much.
You are quite right. I am very old. Some would say ancient - others would say irrelevant. I refuse to believe that man is inherently evil. I believe he is inherently good and that all things being equal, he will do what is good and right and just. Naive? Some would say that. It is a choice - like how one views Christmas. For me it is simple. Most things are. It is a time when we all get to start all over fresh and new and try to do better "next time" I have to believe that. In our company we live by simple rules: do the right thing regardless of the personal consequences; take care of the men and the men will take care of the mission; all failures are failures in leadership. They are not just words; we live them and make them real. We believe that we cannot change the world, but we can change the world around us and help others change the world around them. It may be naive and it may all seem corny and old fashioned, but we make it real each and every day and we do it for one another. That is why I get flaming mad when I hear of companies cutting back to support their bottom lines. In my company, I would take no pay, and pay in my own money to make sure people keep their jobs before I would let anyone go because of economics. Many would call that stupid. I don't. I know this... I know my men would and do anything to care for the people that trust us to serve them. I have never had to ask men to stay late, or work weekends. I don't have to - they do it, because there is mission and they want our customers to succeed - not to make money so much, but to ensure that each person we serve can take care of the people they care for. Like I said, we keep it simple in this context. It's a happy place and people trust us and on days like today, they come to visit and bring their kids by to meet me and say hello. That humbles me more than there are words to speak of it. Fathers send their sons here to work and learn - they trust us with their kids. I'll send a link by Bob Stein when my article is done so you'll be able to see into our perspective and what we are doing to try and extend what we have built here. Merry Christmas to all! We really can make things better and we do not need any government to do it. |
| #14 By 9589 (76.4.23.8) at 12/25/2008 7:47:24 AM |
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You wrote, "The US survival will be assured fixing the infrastructure and the basic economic of the Country not starting wars in order to boost profits for companies belonging or controlled by friends of friends."
First of all, 50 million people have the possibility of the same freedoms that we enjoy, and take for granted for the most part, that didn't a few years ago. If that is being naive, so be it. Regarding war profits, if you own a general mutual fund in your IRA, 401k, etc. you are reaping those profits too - so who is being naive now? Regarding charitable giving, your next comment, Americans have been and remain the most generous on the planet. Private citizens alone gave over 300B in 2006. When you throw in our government's contributions, paid for by our citizens, it is more than all other countries combined. As important, because of our vast transportation assets (it's that crappy infrastructure you refer to), primarily military for first response, again paid for by American citizens, we invariably are the first on the scene, foreign government permitting, of a disaster to provide aid regardless of where it may happen on the planet. You won't get the above facts in but a few media outlets - one of them is Fox News. Have a Merry Christmas! |
| #15 By 1896 (74.166.235.69) at 12/25/2008 10:27:28 AM |
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The Congress, that should represent the will of people, authorize the war for different reasons not to "free" a foreign Country from someone, with whom, again, we were in bed with till the day before. As for these 50 million of happy people I am afraid that what Fox News portrait you about Middle East is very misleading reality; I was in the area in the early '80s so I speak by direct experience.
Besides Fox News political orientations, what scares me about that network is the profound ignorance and the lack of history and geopolitical knowledge that transpire in their statements. I am not saying that CNN is much better, in fact I mainly watch BBC. I never had any doubt that wars, all wars, are started and fought for a profit, Crusades one of the best example, so no I am not naive. I never talked about charity, are you confused? Happy Holidays This post was edited by Fritzly on Thursday, December 25, 2008 at 10:28. |
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