Linked by Thom Holwerda on Thu 22nd Jan 2009 15:37 UTC
Microsoft After much, much, much speculation, Microsoft let the cat out of the bag today: due to weak results, Microsoft is going to cut 5000 jobs. Those 5000 jobs will disappear over the course of 18 months, with 1400 jobs being cut immediately. Quarterly results, as well as the cost-cutting measures, were made known in a press release today.
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RE[4]: It is a shame
by spiderman on Mon 26th Jan 2009 15:29 UTC in reply to "RE[3]: It is a shame"
spiderman
Member since:
2008-10-23

You've not ever been involved in the realities of any business, period, when it comes to the realities of running it, and you've also got no knowledge of what software engineers are paid, either on average or in localities.
I have been involved in the realities of the biggest businesses, not your local 100 man software company. I have been working in several big business for the director board, notably in a big bank that make more than $50 billions a year. Anyway that doesn't matter at all.

1. Average starting salaries for noob engineers is > than the $50k within the US, for just the stated salaries: remember this important point for later. If you load up on Indian workers in India, I suspect you can pay less.
I suspect not all 5000 workers they are going to lay off are noob engineers and not all are from the US. Maybe half of them are in the US and maybe 1000 of them are software engineers.

2. Curiously enough, most large software firms that develop broad market software tend to be located in areas with higher living costs: the Seattle area is definitely one of them, I know from living there for 4 years after moving from Indianapolis, which has neither large successful software companies, nor a high cost of living (it is actually below average by quite a bit).
Most large software firm are located everywhere in the world. Microsoft certainly has offices everywhere in the world.

3. bla bla bla
4. bla bla bla
5. bla bla bla
6. bla bla bla
7. bla bla bla
8. bla bla bla
9. bla bla bla

If that cost that much, how come they still give about $10 billions a year to their share holders?
It doesn't matter at all how an employee cost and all the bla bla bla. The fact is there: they make $10 billion in profit a year on the back of the workers.

10. Overall inflation in the US has averaged at least 3% for several decades, and often much worse in other parts of the world. At that rate, $50K 20 years from now is likely to be below minimum wage in Washington state, as it is already >$16k for a full-time hourly wage now. It doesn't pay to make such budgets that far in the future:)

And at the same time, $10 billions grow by more than 10% a year by themselves, mainly on the back of the workers.

11. more bla bla

I'm willing to bet I left out expense items in this list :p Like... retraining/educational reimbursement...

You can add up all the expenses they spend, they still make about $10 billions a year in profit that they don't spend on workers.

Reading your post, I was ready to send them a donation to pay their employees, but I checked my bank account and theirs.

Edited 2009-01-26 15:30 UTC

Reply Parent Score: 1