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Submission + - Another Analyst Recommends M$ Layoffs. (

twitter writes: "Rumours of massive layoffs at M$ have been swirling for a couple of weeks and analysts are responding by saying it's a good idea.

True or not (and there are indications the rumors might not be true) all the talk of forthcoming Microsoft lay offs seems to be encouraging Wall Street analysts to essentially call for Microsoft job cuts. In a report today, Goldman Sachs' Sarah Friar says lay offs at Microsoft are "likely" and would be "good for the shares. ... Our rough analysis suggests a 10% headcount reduction corresponds to about a 7% reduction in op ex, or approximately an incremental 20c to FY2010 estimates. "

Oppenheimer & Co.'s Brad Reback had previously said that lay offs at Microsoft would be "healthy" and that a 10 percent cut would correspond to about 10 cents of earnings per share.

Because of Vista's failure and many other business problems, I've been expecting this kind of news since September."


Submission + - M$ Has it's First Hiring Freeze. (

twitter writes: "Network News broke the now hotly denied story of a M$ hiring freeze.

Microsoft has instituted a hiring freeze, likely spurred by the worsening economic conditions in the U.S., according to a source close to the company. ... On Friday, the software giant started sending a note to employees informing them of the decision, according to an employee who saw the letter but asked not to be named.

The denial story shows that the original email was genuine and has more details:

On Friday, some employees received a note saying that the company was re-evaluating open headcount and wouldn't be adding new headcount.

But Gellos [M$ spokesweasel] said the company intends to continue hiring new workers. "This year we expect lots of growth and that we will hire lots of people," he said. "I think the nuance is in the fact that in light of the economy it's important that we do the prudent thing and evaluate projects that we're working on."

It is important not to blame this move on the economic climate alone. Healthy companies will prosper and grow in the adversity, especially as M$ loses their ability to interfere. Companies that don't have anything people want to buy will sink into debt and fail.

Anyone think this will hurt Steve Ballmer's chances for a $20,000,000 bonus?"


Submission + - GameStop drops Microsoft's Zune (

Maow writes: GameStop, which operates in Canada and other countries through its EB Games brand, has decided to stop selling Microsoft Corp.'s Zune digital music player because of a lack of demand.

Microsoft earlier this month announced it had sold two million Zunes since their launch in November 2006 ... Apple in its most recent quarter sold 10.6 million iPods, or more than five times Microsoft's cumulative total over a year and a half.

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