Jul 08


Microsoft Fires 7,800: Second Biggest Mass Layoff In Its History (ZeroHedge, July 8, 2015): 

It has been almost exactly one year since Micorsoft announced it would fire a record 18,000 people (surpassing the previous all time high layoff round of 5,800 in 2009) form a company that one upon a time seen as infallible as AAPL. So perhaps in order to release more funds with which to buy back its struggling stock, moments ago Microsoft did what it had to do to make corporate executives richer, and reported it would lay off another 7,700 workers.

From the press release:

Microsoft Corp. today announced plans to restructure the company’s phone hardware business to better focus and align resources. Microsoft also announced the reduction of up to 7,800 positions, primarily in the phone business. As a result, the company will record an impairment charge of approximately $7.6 billion related to assets associated with the acquisition of the Nokia Devices and Services (NDS) business in addition to a restructuring charge of approximately $750 million to $850 million.

Today’s announcement follows recent moves by Microsoft to better align with company priorities, including recent changes to Microsoft’s engineering teams and leadership, plans to transfer the company’s imagery acquisition operations to Uber, and shifts in Microsoft’s display advertising business that enable the company to further invest in search as its core advertising technology and service.

Today’s plans were outlined in an email from Microsoft CEO Satya Nadella to Microsoft employees.

“We are moving from a strategy to grow a standalone phone business to a strategy to grow and create a vibrant Windows ecosystem including our first-party device family,” Nadella said. “In the near-term, we’ll run a more effective and focused phone portfolio while retaining capability for long-term reinvention in mobility.”

Microsoft will record a charge in the fourth quarter of fiscal 2015 for the impairment of assets and goodwill in its Phone Hardware segment, related to the NDS business. This charge has no impact on cash flow from operations and is nondeductible for income tax purposes. Based on the new plans, the future prospects for the Phone Hardware segment are below original expectations. Accordingly, the company concluded that an impairment adjustment of its Phone Hardware segment assets and goodwill of approximately $7.6 billion is required.

We hope Satya Nadella at least has the courtesy to wait a week before announcing a comparable $7.6 billion or so buyback authorization.

MSFT buybacks


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3 Responses to “Microsoft Fires 7,800: Second Biggest Mass Layoff In Its History”

  1. Marilyn Gjerdrum Says:

    Wait until the trade deal kicks in. This is but the beginning.

  2. Marilyn Gjerdrum Says:

    On top of these job losses, the leading republican idiot says that he will work for a better economy (for who?) but Americans will have to work even longer hours……..
    Fools, clowns and corporate puppets…..

  3. Marilyn Gjerdrum Says:

    One more statistic to add to the above post….

    A report released by Gallop in September 2014, showed that Americans are working an average of 47 hours per week, which is almost a whole extra day. Just 40 percent of Americans said they worked an average 40 hour week, with over half saying they worked more. In fact, almost 20 percent of those surveyed said they worked over 60 hours per week, with just eight saying they worked less than 40 hours.

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