Recap of Microsoft News Today

Here’s a recap of Microsoft’s news today:

  • News of impending layoffs leaked (accurately) two days in advance. So much for discipline among the ranks.
  • Microsoft’s overall workforce will be reduced by 18,000, comprised of more than 18,000 layoffs and some new positions created in other places.
  • Of the 30,000 Nokia employees brought into the company in April, 12,500 will lose their jobs.
  • Layoffs will occur over the course of the next year, meaning that all the employees will remain paranoid for the foreseeable future.
  • Satya and the senior leadership team issued long, rambling memos filled with nonsense corporate speak trying to justify the layoffs.
  • The company will attempt to flatten out the org chart magically by firing individual contributors (not managers).
  • The company will also attempt to reduce its reliance on contingent staff, despite the fact that the same amount of work will still need to be done and every past layoff has increased the reliance on contingent staff to get necessary work done.
  • Satya Nadella will give more details next week when Microsoft’s quarterly earnings are announced.
  • OSG laid off a lot of people, mainly SDETs, resolving redundancies across the various OS-related teams that had been previously brought together into the one organization.
  • Xbox Entertainment Studios will be shutting down, because reasons.
  • Mini-Microsoft re-emerged from the rock he had been hiding under.
  • MSFT stock price went up.
  • Losers:
    • SDETs, particularly in OSG;
    • Nokia employees;
    • Microsoft senior executives trying to build trust and rapport with their employees.
  • Winners:
    • ValueAct: mission accomplished;
    • Short-term investors in Microsoft stock;
    • Microsoft employees who thrive on paranoia and fear;
    • People with the word “synergies” on their Corporate Memo Bingo card;
    • People who get paid by the word to write corporate memos on behalf of executives;
    • Apple, Google, and Microsoft’s other competitors, who will benefit greatly from the next 12 months of chaos and confusion in Redmond;
    • Tech recruiters: it’s open season on Microsoft employees at all levels.

As much as I like and respect Satya, for someone who is trying to build a new Microsoft he sure seems to be running plays out of the old Microsoft playbook.

 

2 Comments

  1. Scott Robertson says:

    Of course, executives took a cut to help do their part? Oh, maybe not.

  2. Every company I have known that had a top heavy management tried to save money by cutting individual contributors. How to people who do that get to be and stay senior managers? So many mistakes in how this is being done but you seem to have listed them all.

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