| From: Eric L | 7/17/2014 10:15:17 PM | | | | | | Microsoft's Job Cuts Comments (Wired & AAWP) ...
>> Why Cutting 18,000 Jobs Was Likely Microsoft’s Plan All Along
Issie Lapowsky
Wired
07.17.14
wired.com
Microsoft will slash up to 18,000 jobs by the end of the year. That’s 14 percent of the company’s workforce, and it amounts to the largest round of layoffs in the nearly 40 year history of the software kingpin.
On Thursday morning, with an email euphemistically titled “Starting to Evolve Our Organization and Culture,” CEO Satya Nadella announced that the bulk of the cuts would affect employees working for Nokia, the mobile phone company Microsoft acquired last September. According to Nadella, these cuts would encourage “work simplification,” “integration synergies,” and “strategic alignment.” But even the heavy-handed business jargon couldn’t mask the simple fact that 18,000 jobs is a hell of a lot of jobs to lose.
And yet, tragic as these deep cuts will be for Microsoft employees and their families, it may be premature to assume this massive round of layoffs means Microsoft is in dire trouble. In fact, tough as the decision may have been, it might be the best thing for the company in the long term. “I find myself saddened and disturbed at the news, but there are definitely legitimate business cases to do it,” says J.P. Gownder, a vice president and principal analyst at Forrester Research.
Tough as the decision may have been, it might truly be the best thing for the company in the long term.
The fact is: when Microsoft acquired Nokia and its 25,000 employees, Nokia had already fallen far behind in the smartphone market, beat out by frontrunners like Apple and Samsung. What Microsoft needed was not the Nokia brand, but greater control over phones running its Windows Phone operating system, so it could work to further expand its place in the market.
Some, but not all of Nokia’s employees, would be critical to that goal, and according to Gownder, this restructuring was likely part of Nadella’s plans all along. “A lot of what’s going on is eliminating what are, on paper, redundancies,” he says. “It’s not a willy nilly thing. I’m sure when they bought Nokia, this was the plan.”
With a slightly leaner organization, Nadella now feels Microsoft will be better suited to compete with the likes of Apple and Google in the smartphone space. Still, even with reduced overhead, Microsoft has a huge task ahead of it to truly compete with other smartphone-makers, and it’s unclear whether Nadella is willing to take enough risks to make that happen. For instance, plans to develop a Nokia phone that runs on Android, a move that might have attracted more consumers to Nokia’s devices, have been shelved. Instead, Nadella is committed to taking the Windows Phone operating system mainstream, which Gownder says is a major challenge, considering it doesn’t have much of an app ecosystem. “All these new apps come out for iPhone and Android, and they don’t come to Windows Phone, in some cases, ever,” he says. “That’s a huge demerit in the efficacy of the platform.”
Gownder also warns that Nadella shouldn’t underestimate the business cost of cutting so many employees. “I do tend to think this will have costs in terms of losing people who have embedded knowledge you don’t realize you’re getting rid of,” he says, adding that the layoffs will have “tangible affects on morale.” To avoid a disastrous fallout, Gownder says, Nadella ought to make it clear that though this is an unprecedented change, it is not just the first of many to come. “My hope is that this is a carefully thought out restructuring, and this will be a one-time change, so they can go and execute,” he says. “There’s always a cost associated with these kinds of moves, but companies can survive and move on.” ###
>> Microsoft/Nokia job cuts, Nokia X line to transition to Windows Phone
Steve Litchfield
AAWP
July 17th 2014
allaboutwindowsphone.com
Filed under 'link of interest', certainly, but big news for many ex-Nokians today, as Microsoft CEO Satya Nadella announced heavy job cuts, quoted below, plus threw out what seems the death knell for Nokia's still-born 'X' line of Android smartphones.
microsoft.com
From the Microsoft missive from Satya:
The first step to building the right organization for our ambitions is to realign our workforce. With this in mind, we will begin to reduce the size of our overall workforce by up to 18,000 jobs in the next year. Of that total, our work toward synergies and strategic alignment on Nokia Devices and Services is expected to account for about 12,500 jobs, comprising both professional and factory workers. We are moving now to start reducing the first 13,000 positions, and the vast majority of employees whose jobs will be eliminated will be notified over the next six months. It’s important to note that while we are eliminating roles in some areas, we are adding roles in certain other strategic areas.
12,500 out of between 25,000 and 30,000 employees acquired with Nokia means that almost half the workforce acquired are being made redundant over the next 12 months, which must be a big blow to many ex-Nokians. Such massive job cuts aren't unexpected, given the merging of two very large companies, with large areas of duplication, but it will still hurt those involved. Engineers and designers, those close to the technology, are likely to be safe. Satya goes on in much the same vein:
Second, we are working to integrate the Nokia Devices and Services teams into Microsoft. We will realize the synergies to which we committed when we announced the acquisition last September. The first-party phone portfolio will align to Microsoft’s strategic direction. To win in the higher price tiers, we will focus on breakthrough innovation that expresses and enlivens Microsoft’s digital work and digital life experiences. In addition, we plan to shift select Nokia X product designs to become Lumia products running Windows. This builds on our success in the affordable smartphone space and aligns with our focus on Windows Universal Apps.
Several interesting turns of phrase in here:
'breakthrough innovation' (in the higher price tiers) presumably refers to imaging and also to new UI concepts based on 3D interaction over the phone screen.
'Nokia X product designs to become Lumia products running Windows' - many people had speculated (wildly) that Microsoft allowed the Nokia 'X' line of handsets to be launched because they (and Android) were the future and that Windows Phone would ultimately be canned. Instead, sensibly, the X line is being changed in upcoming devices to run Windows Phone, keeping Microsoft focussed on just one mobile/portable OS.
The second bullet point above doesn't preclude that Android compatibility plays some part in Microsoft's and Windows Phone's future, of course. Informed observers have speculated that the next version of the OS (8.1 Update 1) may have an Android virtual machine built-in, in the style of Blackberry/Jolla, wherein selected Android applications can be added by a user. ###
- Eric L. - |
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| From: Eric L | 7/17/2014 11:34:02 PM | | | | | | Elop Speaks: No More Nokia Android, Series 40 or Asha. The focus is Windows Phone ...
microsoft.com
Hello there,
Microsoft’s strategy is focused on productivity and our desire to help people “do more.” As the Microsoft Devices Group, our role is to light up this strategy for people. We are the team creating the hardware that showcases the finest of Microsoft’s digital work and digital life experiences, and we will be the confluence of the best of Microsoft’s applications, operating systems and cloud services.
To align with Microsoft’s strategy, we plan to focus our efforts. Given the wide range of device experiences, we must concentrate on the areas where we can add the most value. The roots of this company and our future are in productivity and helping people get things done. Our fundamental focus – for phones, Surface, for meetings with devices like PPI, Xbox hardware and new areas of innovation -- is to build on that strength. While our direction in the majority of our teams is largely unchanging, we have had an opportunity to plan carefully about the alignment of phones within Microsoft as the transferring Nokia team continues with its integration process.
It is particularly important to recognize that the role of phones within Microsoft is different than it was within Nokia. Whereas the hardware business of phones within Nokia was an end unto itself, within Microsoft all our devices are intended to embody the finest of Microsoft’s digital work and digital life experiences, while accruing value to Microsoft’s overall strategy. Our device strategy must reflect Microsoft’s strategy and must be accomplished within an appropriate financial envelope. Therefore, we plan to make some changes.
We will be particularly focused on making the market for Windows Phone. In the near term, we plan to drive Windows Phone volume by targeting the more affordable smartphone segments, which are the fastest growing segments of the market, with Lumia. In addition to the portfolio already planned, we plan to deliver additional lower-cost Lumia devices by shifting select future Nokia X designs and products to Windows Phone devices. We expect to make this shift immediately while continuing to sell and support existing Nokia X products.
To win in the higher price segments, we will focus on delivering great breakthrough products in alignment with major milestones ahead from both the Windows team and the Applications and Services Group. We will ensure that the very best experiences and scenarios from across the company will be showcased on our products. We plan to take advantage of innovation from the Windows team, like Universal Windows Apps, to continue to enrich the Windows application ecosystem. And in the very lowest price ranges, we plan to run our first phones business for maximum efficiency with a smaller team.
We expect these changes to have an impact to our team structure. With our focus, we plan to consolidate the former Smart Devices and Mobile Phones business units into one phone business unit that is responsible for all of our phone efforts. Under the plan, the phone business unit will be led by Jo Harlow with key members from both the Smart Devices and Mobile Phones teams in the management team. This team will be responsible for the success of our Lumia products, the transition of select future Nokia X products to Lumia and for the ongoing operation of the first phone business.
As part of the effort, we plan to select the appropriate business model approach for our sales markets while continuing to offer our products in all markets with a strong focus on maintaining business continuity. We will determine each market approach based on local market dynamics, our ability to profitably deliver local variants, current Lumia momentum and the strategic importance of the market to Microsoft. This will all be balanced with our overall capability to invest.
Our phone engineering efforts are expected to be concentrated in Salo, Finland (for future, high-end Lumia products) and Tampere, Finland (for more affordable devices). We plan to develop the supporting technologies in both locations. We plan to ramp down engineering work in Oulu. While we plan to reduce the engineering in Beijing and San Diego, both sites will continue to have supporting roles, including affordable devices in Beijing and supporting specific US requirements in San Diego. Espoo and Lund are planned to continue to be focused on application software development.
We plan to right-size our manufacturing operations to align to the new strategy and take advantage of integration opportunities. We expect to focus phone production mainly in Hanoi, with some production to continue in Beijing and Dongguan. We plan to shift other Microsoft manufacturing and repair operations to Manaus and Reynosa respectively, and start a phased exit from Komaron, Hungary.
In short, we will focus on driving Lumia volume in the areas where we are already successful today in order to make the market for Windows Phone. With more speed, we will build on our success in the affordable smartphone space with new products offering more differentiation. We’ll focus on acquiring new customers in the markets where Microsoft’s services and products are most concentrated. And, we’ll continue building momentum around applications.
We plan that this would result in an estimated reduction of 12,500 factory direct and professional employees over the next year. These decisions are difficult for the team, and we plan to support departing team members with severance benefits.
More broadly across the Devices team, we will continue our efforts to bring iconic tablets to market in ways that complement our OEM partners, power the next generation of meetings & collaboration devices and thoughtfully expand Windows with new interaction models. With a set of changes already implemented earlier this year in these teams, this means there will be limited change for the Surface, Xbox hardware, PPI/meetings or next generation teams.
We recognize these planned changes are broad and have very difficult implications for many of our team members. We will work to provide as much clarity and information as possible. Today and over the coming weeks leaders across the organization will hold town halls, host information sharing sessions and provide more details on the intranet.
The team transferring from Nokia and the teams that have been part of Microsoft have each experienced a number of remarkable changes these last few years. We operate in a competitive industry that moves rapidly, and change is necessary. As difficult as some of our changes are today, this direction deliberately aligns our work with the cross company efforts that Satya has described in his recent emails. Collectively, the clarity, focus and alignment across the company, and the opportunity to deliver the results of that work into the hands of people, will allow us to increase our success in the future.
Regards,
- Stephen -
# # #
- Eric L. - |
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| To: Eric L who wrote (120) | 7/18/2014 11:58:06 AM | | From: zax | | | | Yesterday, word came down that Microsoft was starting to lay off some 18,000 workers. As of June 5th, Microsoft reported a total employee headcount of 127,005, so they're cutting about 15% of their jobs. That's actually a pretty huge percentage, even taking into account the redundancies created by the Nokia acquisition. Obviously, there's an upper limit to how much of your workforce you can let go at one time, so I'm willing to bet Microsoft's management thinks thousands more people aren't worth keeping around. How many employees does Microsoft realistically need? The company is famous for its huge teams that don't work together well, and excessive middle management. But they also have a huge number of software projects, and some of the projects, like Windows and Office, need big teams to develop. How would we go about estimating the total workforce Microsoft needs? (Other headcounts for reference: Apple: 80,000, Amazon: 124,600, IBM: 431,212, Red Hat: 5,000+, Facebook: 6,800, Google: 52,000, Intel: 104,900.)
via SlashDot
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| From: zax | 8/25/2014 11:52:45 PM | | | | | | Windows 9 (Threshold): Welcome to Modern UI 2.0
Written by Zac Bowden on August 25, 2014 - 02:03AM
winbeta.org
<snip> ...
There is no middle ground between devices that have the Modern UI and devices that have the desktop. You either have the desktop or you have the Modern UI, you cannot have both. As reported around a month ago, the Start Menu for desktop users in Windows Threshold can 'act' like a full screen Start Menu however, meaning if you want that functionality you can have it on the desktop. This will be helpful for devices like the Surface Pro 3.
The removal of the desktop has been talked about about in the past, and will be mostly apparent with Windows RT devices. Current Win32 applications are being replaced with Modern UI alternatives which means the desktop will have no real use. Of course, the removal of the desktop isn't for all devices, so don't be alarmed fellow desktop users.
</snip> Read the rest here: winbeta.org |
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| From: Sr K | 10/15/2014 2:38:27 AM | | | | | | Cut from NPR
Patrick McBride, a spokesman with iSight, says the hackers targeted specific officials using a well-known kind of attack called spear-phishing. Hackers would craft a message with a PowerPoint document attached. For example, they'd say, "We'd like to be involved in the conference."
And when an unknowing recipient opened the corrupted PowerPoint, the file was exploited to load a piece of malware onto the computer that the attacker could then use later to "exfiltrate documents," McBride says.
The hacker group, dubbed the "Sandworm Team," allegedly pulled emails and documents off computers from NATO, Ukrainian government groups, Western European government officials, and energy sector and telecommunications firms.
In the mad dash to grab information, McBride says, the hackers got a little sloppy and dropped hints about their identity. He says they're Russian, "but we can't pinpoint if they work for the Russian government or work in a particular department in the government."
The Russian embassy did not immediately respond to NPR's inquiry. Microsoft says that Tuesday, it's patching the security flaw so that PowerPoint and other Office products can't be exploited again in the same way. |
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| From: zax | 10/20/2014 9:58:29 AM | | | | | | A Microsoft smartwatch could be here within weeks
Summary: Microsoft's smartwatch could be available before consumers can get their hands on Apple Watch.
By Liam Tung | October 20, 2014 -- 09:09 GMT (02:09 PDT)
Microsoft's long-rumoured smartwatch could be announced within weeks, giving the company a device to square up to wearables from Apple and Google's Wear partners.
zdnet.com |
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| From: zax | 10/21/2014 11:57:52 AM | | | | | | The last emblems of Nokia are being removed from Microsoft products. "Microsoft Lumia" is the new brand name that takes their place. The name change follows a slow transition from Nokia.com over to Microsoft's new mobile site, and Nokia France will be the first of many countries that adopt "Microsoft Lumia" for its Facebook, Twitter, and other social media accounts. Microsoft has confirmed to The Verge that other countries will follow the rebranding steps in the coming weeks. Nokia itself continues as a reborn company focusing on mapping and network infrastructure services.
via SlashDot |
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| From: Eric L | 10/25/2014 10:32:45 AM | | | | | | Microsoft Devices (Lumias & Surface tablets) in CQ3 2014 ...
"Sales of its Lumia smartphones hit 9.3 million in the first full quarter since the close of the Nokia deal. Sales of the Surface tablet more than doubled to $908 million from $400 million in the year-ago quarter." - Reuters on Microsoft Q3 -
Microsoft Devices and Consumer revenue grew 47% to $10.96 billion, while Commercial revenue grew 10% to $12.28 billion.
allaboutwindowsphone.com
It's results time again, with an interesting couple of statistics coming from Microsoft's (effective) Q3 financials - it seems (according to Reuters) that 9.3 million Lumia smartphones were sold in the period, a slight increase year on year from Nokia's 8.8 figure in the same quarter last year.
With the sale of Nokia to Microsoft in the intervening year and the disruption that this inevitably caused, the rise in sales is reassuring. In fact, Microsoft generally had a very good quarter. Devices and Consumer revenue grew 47% to $10.96 billion, while Commercial revenue grew 10% to $12.28 billion.
9.3 million Lumias in a quarter (plus, no doubt a million or two from other licensees, including the new ones, a contribution which will only grow and grow) should be put in context against typical Apple iPhone sales of 30 million or so (i.e. only a third as many as iPhone shipments) and typical Samsung Android sales of up to a hundred million per quarter. Worldwide smartphone market share for Windows Phone is still somewhere between 3 and 6% (depending on how you define 'smart', as always), though of course higher, up well over 10% in some markets. Still, Windows Phone is very much still in the game, especially with the Windows 10 thrust/unification happening over the next 12 months [see Below]. ###
>> The next-gen version of Windows Phone to be called "Windows 10"
Steve Litchfield
AAWP
September 30th 2014
allaboutwindowsphone.com
In an event in the USA today, Microsoft announced the name and desktop features of its next-gen version of Windows, to be dubbed 'Windows 10', and the version that nominally integrates phone, tablet and laptop/desktop in one platform. According to Microsoft, Windows 10 will encompass "one product family, one platform, one store." So, in theory, come the end of 2015, we could be used to talking about Windows 10 on our smartphones.
Details are still very sketchy, and the requirements for Windows 10 are likely to be such that very little 2014 phone hardware will be upgradable. So it's not something most of us will have to worry about in the short term.
Will the software on our phones really be the full 'Windows 10'? Obviously not, Joe Belfiore confirmed that there won't be a 'desktop' in the phone interface (thankfully), and my bet is that the build for smartphones will be an evolution of what we have today, but with even more in common with the desktop in terms of compatibility/universal applications, and so on.
What's next for the 2012/2013 Snapdragon S4-powered phones like the Lumia 920/925/1020? Maybe one more major OS update, WP 8.1 Update 1, maybe Update 2 in the Spring? But probably no more than this. It's possible that Snapdragon 800-powered phones like the Lumia 1520 and 930 might get a sniff of Windows 10, but at this stage it seems unlikely.... and a long way off! ###
- Eric L. - |
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| From: Eric L | 10/25/2014 11:10:22 AM | | | | | | Microsoft Devices & Consumer in CQ3 2014 (FQ1 2015) ...
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- Eric L. - |
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