Microsoft to cut 18,000 jobs, redefining itself as “mobile and cloud-first”

Xbox One

By on July 18, 2014 at 2:45 pm

Microsoft has today announced that it will slash 18,000 jobs, the biggest single round of layoffs in the company’s history, as it repositions itself in the market.

The company’s Nokia division, which Microsoft acquired in September 2013, is the hardest hit. 12,500 staff at Nokia will be affected by this decision, which Microsoft’s CEO described as “our work toward synergies and strategic alignment”.

In a company memo obtained by The Verge, Microsoft’s Phil Spencer confirmed that the Xbox Entertainment division would be closed.

The closure is seen as a recognition that Microsoft’s move away from turning the Xbox into an “entertainment centre” was the right call: Microsoft’s Xbox One console sales have doubled since a Kinect-free edition was put on the market.

Projects currently being produced by the Xbox Entertainment Division, including the Steven Spielberg-directed Halo series, will continue, but all future projects have been canned. Xbox Entertainment recently debuted their “Xbox Originals” program designed to compete directly with offerings such as Netflix, but this is no longer the case.

Source: via VG27, Eurogamer, others

38 comments (Leave your own)

Holy shitballs. What about OS development?

 

Holy crap.

 

zombywolf,

not expecting good things out of their OSes. Windows 9 so far looks like another step in the wrong direction. They just wont let this metro shit die.

 
MagicFoozlePixxie

Am I correct in assuming Xbox entertainment simply refers to all their non gaming “it’s also a TV!” shite?

 

I guess this is what happens when you try to impose what you want on your customers rather than supplying what they want.

 

gammad,

I like metro and I find it hilarious that everyone’s biggest complaint with the current build of windows is the GUI.

 

I’ll set a couple things straight for y’all;

* Let’s not forget that Microsoft took on 12500 or so employees from Nokia
* OS Development will infact speed up as the trimming down of middle-management and the silo’ing of egineers, developers are tests will improve workflows.
* MS themselves have described Windows 9 as “enterprise focussed” and you’ll be getting your Start Menu back, I’m sure that’ll solve all your little problems – because the Start Menu is integral to an OS /end sarcasm
* Let’s not forget that like Google but unlike Apple, MS are positioning themselves for a single, scalable kernel. That means that Xbox, Windows Phone, Windows RT, and regular Windows share the same ‘DNA’ and developers can code once and for many. This is a good thing. It’s already happening with Universal Apps, so I can purchase and install Halo Spartan Assault on my Windows Phone and the same app is available and installed on all my Windows 8 PC’s/tablets – pretty cool!
* The cuts to Xbox entertainment refers to some recent original programming that MS was looking to do. Such as original TV shows etc., it has nothing to do with hardware or Xbox itself.

Trimming the fat is exactly what MS needs to do, especially in the low end and middle-management areas. It will enable them to move faster in very fast markets, making them more like ‘start-ups’ than big slow moving machines. The NYSE loved the news, stock prices went up – don’t read bad news into it (unless you are one of those people losing the job of course)!

Right now, Microsoft is the only company that offers the majority of its key services on ALL platforms – the Google’s and the Apple’s could do the same but they want buyer lock-in instead. Microsoft is acknowledging that those platforms are very much real and popular and they back the end users by offering their wares on all those devices as well as their own. If anything, they are more user-focussed than either of the other two, although they haven’t been able to innovate quickly enough by comparison. When you are heavily weighed down by legacy users it’s hard to break new ground without pissing off millions of people.

It’s ‘cool’ these days to mock Microsoft (whether you know what you’re talking about or not) but I actually believe they deserve more credit.

 
MagicFoozlePixxie

schikitar,

Very informative, thank you.

 

Um they cut the Q&A department in Seattle…
so they cut there testing department… hope you like being Beta Testers for new MS products.
My heart goes out to Barnacules who was a Senior Developer for them (15 years service)

 
 

spooler:
gammad,

I like metro and I find it hilarious that everyone’s biggest complaint with the current build of windows is the GUI.

I find it hilarious that they could so easily have pleased everyone by just giving people a choice but chose not to do that.

 

schikitar,

I do think you’re very informative but I can’t help but feel for those 18,000 people who now need to go find themselves another job.

 

spooler,

Finding other peoples opinions hilarious because they differ from yours, 10/10 (A GUI is what ultimately determines the user experience… So its quite vital and since its a GUI its also filled with opinions.)

I use both windows 7 and windows 8 on a daily basis. Both for developing software and advanced usage… I still prefer windows 7 simply because i can not stand windows 8 metro. In my opinion, its just bad.

 

Oh snap… you make more money when you sell people what they want and not what you randomly decide to shove down their throat?

Can we get Bill back?

 

nekosan:
Can we get Bill back?

Yeah because its not like he ever produced a bad product right?

Windows ME
Windows Vista…

 

deathmist: Finding other peoples opinions hilarious because they differ from yours, 10/10

Does my finding peoples opinions funny offend you ? I also find it hilarious that there’s people who refuse to believe the Earth orbits the sun I guess I should respect their totally valid opinion?

schrapple: I find it hilarious that they could so easily have pleased everyone by just giving people a choice but chose not to do that.

Introducing people to a new interface was such a horrible thing to do wasn’t it ? How dare Microsoft try to push their vision for their software even though it totally didn’t change any of the fundamentals of how the system actually worked !

 

schikitar:
* MS themselves have described Windows 9 as “enterprise focussed” and you’ll be getting your Start Menu back, I’m sure that’ll solve all your little problems – because the Start Menu is integral to an OS /end sarcasm

No but a good efficient GUI is. Which is, you know, the main goal of any OS.
Having used this now for 2 devices (one being primary touch screen) has made my opinion even worse. “App” store is horrible. Windows Account is ridiculous. Really annoying to use with the mouse, the stupid sidebar pops up every time your mouse rolls over the right. Hilariously enough, it won’t always register touch when trying to do the same thing.

 

spooler: I also find it hilarious that there’s people who refuse to believe the Earth orbits the sun I guess I should respect their totally valid opinion?

This isn’t right because they are trying to state an opinion as a scientific fact. This would be like you getting your crotch in a twist because someone said they like strawberry ice cream and not chocolate ice cream.

 

matty,

I find those people hilarious aswell. chocolate is CLEARLY superior. And really it’s not even that I just find people complaining about it hilarious because it takes all of 5 seconds to download and install a new gui if you so greatly hate metro, it’s not like you’re stuck with it.

Honestly it’s more like finding someone who hates syrup on pancakes putting syrup all over their pancakes or complaining about it.

 

schikitar:
I’ll set a couple things straight for y’all;

* Let’s not forget that Microsoft took on 12500 or so employees from Nokia

Actually they took on ~25000 employees from Nokia (http://www.reuters.com/article/2014/07/17/us-microsoft-employment-idUSKBN0FM1EH20140717)

countjeffrey:
schikitar,

I do think you’re very informative but I can’t help but feel for those 18,000 people who now need to go find themselves another job.

Not all 18000 people will lose their jobs completely – At least some/maybe many will be offered reassignment within Microsoft – pretty standard practice with mass redundancies.

 
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