Microsoft Fires 7,800: Second Biggest Mass Layoff In Its History

Tyler Durden's picture

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.

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JustObserving's picture

Luckily unemployment is only 5.3% in the land of the free.

All fired employess will find jobs at twice their current salary


SethDealer's picture

"lower gas prices will be good for the economy"

SickDollar's picture

MOAR blue screen of death coming

Dubaibanker's picture

Don't forget to add 1,200 jobs fired at Microsoft last week in the land of the manipulated statistics! 

At this speed, 330 million will be unemployed by next year in drug induced ....gun toting land ....where blacks are killed with reckless abandon a sport! 

Microsoft Said to Exit Display Ad Business, Cut 1,200 Jobs
NoDebt's picture

Microsoft has a phone business?  Who knew?

froze25's picture

We will see more of this from other firms, after the Bilderberg meeting I am sure many people left with their marching orders.

Waylon Bits's picture
Waylon Bits (not verified) froze25 Jul 8, 2015 10:34 AM

Nice to see this malware manufacturer selling off.

Creepy A. Cracker's picture

Paraphrasing: The more people we have on welfare the better it is for the economy - Nanny Pelosi (D - Braindead, CA) - At one time third in line to be the president of the U.S.

Oh regional Indian's picture

Also don't forget how an Indian patsy was put in place to oversee the bloated demise of microsoft.

Windows 8 fails in EVERY REGARD. Forget their not-so-Azure offering in the cloud, bloated software, god-awful UI...Skype that went for easy to use to a frigging screen and memory hogging piece of shit...

Na Dell, Na Della...

Hindi joke for the few other original indians here ;-)

froze25's picture

Keep your eye on Skype for business as it coupled with an Asterisk based VOIP/PSTN gateway (free) can replace many phone pbx's with very little cost.  It integrates with your cell phones (Windows, Android, IOS) as well, bottom line its a very affordable, very powerful communications suite that is very cheap in comparison to other phone systems.  Its not for the home user its for large Corps and written very well.  

BarkingCat's picture

We use Skype for Business at my company and it is crap.

Zoomorph's picture

It's not bad, but it uses far too much memory for what it does. Probably leaks like a bitch.

toady's picture

They've totally lost it post-NT. every new OS since NT has been worse than the last, to the point where its almost unusable. What's worse is they're losing their corporate clients, the ones that want a simple, secure platform for their employees to use as a pass-thru to the actual work.


MrPalladium's picture

And that is why we still have 30 million users of XP. Everything after that is annoying, cumbersome .gov spyware.

Wannabee's picture

Maybe so, but I wish I had a nickel for every minute waiting on NT to boot. I'd be telling Jamie D "that's why I'm richer than you"

dreadnaught's picture

Microsoft hires a buttload of Temps, in Redmond. And the once very rich Gates fucked them in every way possible-kind of like Walmart: poor pay, short hours, no bennies etc etc

Finally the temps did a class action lawsuit on MS and got a small increase in better working conditions

Model T's picture
Model T (not verified) SickDollar Jul 8, 2015 11:51 AM

Not here; Linux Mint only, here. What I wonder is, what's he going to do with the 350,000 little Niggra Chilluns he's gonna save every year with his Malaria Vaccine ? Are t hey all gonna come live at his house ? That's the trouble with playing God; you're supposed to be in charge of the whole movie, not just the part that makes you feel good.

Luc X. Ifer's picture

Nah, count the Microsoft new hiring in the near future in South Asia and South Asia's proxy-hub Toronto sweat shops ... just a transfer of the social enclave wealth building work who was good enough before to grow the same Microsoft but for maintaining the same growth and yield for the few owners isn't enough anymore, so the social enclave well being is getting sacrificed in the name of greed of just few.

VinceFostersGhost's picture



Maybe they shouldn't just give Windows away....maybe charge like $40 bucks for it or something.

Ralph Spoilsport's picture

What? They should pay people to use it to offset the support costs and time wasted installing updates and patches.

Creepy A. Cracker's picture

Do what RedHat does with "free" Linux.  $100/year, plus, for support per install.  The most expensive "free" software out there.

Windows is a bargain, costing about $100 for life.

Ralph Spoilsport's picture

RH Linux has always been aimed at the corporate market. Fedora is sponsored by Red Hat and is free and user supported.

Antifaschistische's picture

no problem...their debt level is only $31,960,000,000       (NOT /sarc)

Gen.Ackbar's picture

Your comment is a trap! You failed to note how they also have $85,709,000,000 in cash and short term investments. almost 3x? Looks like we have a future politian here, give us the scary facts without the rest of the truth

Antifaschistische's picture

I didn't fail at anything...there's a plethora of financial data I did not mention.  Doesn't make me a failure.  and if you don't think $30 billion in debt is any problem at all then by all means, buy another 1,000 shares in your 401.  I don't care....

The_Dude's picture

Now it makes sense why they keep demanding higher H1B numbers....their business is just too growthy!!

LoneStarHog's picture

It Is Time, Texas!...Operation Texas: ... Associate with awakened Texans, and help in awakening others ... Read our Mission Statement on our Homepage ... Our site is fully secure with all the latest encryption ... Operation Texas has a plethora of information ... Most important, we have our own totally secure Operation Texas Forum where members can interact with like-minded and preparing Texans ... Join us, Texan!

Model T's picture
Model T (not verified) LoneStarHog Jul 8, 2015 12:04 PM

How to ENSURE that your secure web forum will be broken into; just anounce that it's secure and un-breakable on the inter-net, thereby attracting t he attention of 2,397 professional site hackers who will penetrate it just for fun.

Model T's picture
Model T (not verified) LoneStarHog Jul 8, 2015 12:06 PM

He has a "totally secure Forum"--- except that the NSA has his wife's OTHER cell-phone number, the one he doesn't even know about; and evverything else, too.

HonkyShogun's picture
HonkyShogun (not verified) JustObserving Jul 8, 2015 11:37 AM

This is what happens when you hire curries for officers, they love laying off Americans. I mean more than your average C-suite.

Dr. Engali's picture

Tyler must have pissed the wong people off yesterday. All of your servers bewong to us.

williambanzai7's picture

In the very early days the site would crash or freeze up constantly.

NoDebt's picture

It was the fucken Norks.  First they got Sony, then ZH.

sleigher's picture

Tylers are gonna have to get a .onion for the site to keep it hidden.


Laddie's picture

This website was the best on the web when I first joined. It is now EVEN BETTER! ZH is ripping the Evil Forces a BIG ONE, each and every day. So, batten down the hatches Tyler!

Luckhasit's picture

Damn doc, you beat me to it.

Luckhasit's picture

I was wondering who Tyler pissed off this time.

onewayticket2's picture

if "unemployment is the best form of stimulus" this should, therefore, be bullish for the economy.


hattip:  nancy pelosi


jimfcarroll's picture

In case you hadn't noticed, Microsoft is going through a major business refactor. I suppose, in the authors view, it would be better for them to continue down the road toward irrelevance thereby "laying off" the entire workforce.
EDIT: *retracted insult*

Gaius Frakkin' Baltar's picture

They're already long past irrelevant, they just don't know it.

jimfcarroll's picture

You mean like AAPL before Jobs came back?

NoDebt's picture

Microsoft is the Unisys of it's day.  Or Digital Equipment Corp (DEC).  Or the IBM AS/400 platform.  Take your pick.

Ralph Spoilsport's picture

None of the IT companies you mention have come even close to Micro$oft for stimulating the economy. Legions of technical support people have raised families and enjoyed a high standard of living keeping their crappy desktop and server software patched and limping along.

jimfcarroll's picture

I personally run linux - even on my laptop.

toady's picture

Everyone, literally EVERYONE, is going this route. Linux/UNIX variants (android) keep the base OS simple to allow the user to decide what they want, while MS jams up the OS with so much junk that it renders it nearly unusable.

Jumbotron's picture

Yep.....Linux is not only the future it is our present

95% + of all Supercomputers run Linux

Every smartphone both Android and iPhone run a variant of Linux (Android) and iOS (BSD form of Unix).  Does Microsoft even make a phone anymore......<snicker>

The vast majority of servers running the internet are Linux or Unix based.

All your tablets with the tiny minority of Windows slabs run Linux (Android) or Unix (iOS)

Smart watches run Android (Linux) iOS (Unix) or RTOS (open source Real Time OS)

All your eReaders run Android or Linux outright.

In car entertainment systems run on Android, iOS, QNX (Blackberry).  Ford kicked Microsoft to the curb for QNX.

VMWare and Citrix and AWS (Amazone cloud) are hosting Linux ( Red Hat, Suse and Ubuntu ) prepackaged for industry, banking, research.  There numbers are blazing compared to Windows.

Microsoft will contined to shrink until they are forced to split the company in two like HP.  One for hardware (Xbone) and software (well.....Office.....what is really left ? )

Then they fade away.  Good riddance.

Sony PS4 runs a varient of Unix (FreeBSD)