Microsoft

Zune sales plummeted during holidays

There were plenty of weak spots that led to Microsoft's disastrous December quarter, but one that didn't get much attention Thursday was how badly the Zune did.

Tucked away in Microsoft's quarterly filing with the Securities and Exchange Commission, however, was a startling figure.

"Zune platform revenue decreased $100 million, or 54 percent, reflecting a decrease in device sales," Microsoft said. That's quite a drop.

Apple, by contrast, saw its iPod unit sales up 3 percent, while revenue dropped by 16 percent. It still racked up $3.3 billion in revenue, as compared with … Read more

Microsoft delays plans for Iowa data center

The fallout from Thursday's cost-cutting moves by Microsoft continues. On Friday, Microsoft announced that it is delaying its plans for a massive data center to be built in West Des Moines, Iowa.

It is an abrupt reversal for Microsoft, which announced its plans for Iowa just five months ago as part of its massive push into the data center business. By October, though, the software maker was already detailing plans to cut its data center spending by $300 million. Now Microsoft is looking to cut things even further.

"We are still continuing construction of our facilities in Chicago … Read more

Microsoft merging Office Live, Windows Live

Microsoft confirmed on Friday that it is pushing together its Office Live and Windows Live efforts.

The company isn't changing the development cycle or the leadership of the teams working on the products, but it is promising that consumers will be able to get to both sets of services from a common Web location.

Microsoft didn't say exactly what that spot will be, but the Windows Live branding is expected to be the one that survives the combination, I'm hearing. (But what about Officeliveworkspacecommunity.com? Does Microsoft really want to give up that prime, easy-to-remember address?)

Although … Read more

Microsoft job cuts evenly spread

Microsoft spread the 1,400 immediate layoffs broadly across the company's units, according to a source familiar with the cuts.

The software maker announced plans early Thursday to cut up to 5,000 jobs over the next 18 months, with the first round coming right away.

Hardest hit in those initial cuts, according to the source, were Microsoft's Entertainment and Devices unit, followed by the Server and Tools unit and the Microsoft Business Division, which houses Office and Microsoft's Dynamics products.

Microsoft declined to go into detail on its job cuts, though it said in its press … Read more

Microsoft cutting jobs, but not products

Although Microsoft is cutting jobs, the software maker apparently isn't axing any major products as part of its cost-cutting moves.

On a conference call with analysts Thursday, though, CEO Steve Ballmer defended the company's decision to stick by all of its businesses, even as it looks to cut up to 5,000 jobs.

"I like our portfolio," Ballmer said on the conference call. "The board likes our portfolio," he said, before moving on to the next question.

But should they be so pleased?

Microsoft itself acknowledged on the call that it does not have … Read more

Live blog: Microsoft's earnings call

After posting disappointing earnings and disclosing plans to lay off 5,000 workers, Microsoft held a call with financial analysts. Here's our minute-by-minute coverage of the call, in reverse chronological order.

8:56 a.m. PST: Call has ended.

8:55 a.m. PST: Ballmer on Yahoo: "I don't think we have anything to say about Yahoo." He said the company has been quite public that it remains interested in a search deal. On Yahoo's new CEO: "I know Carol Bartz...(I'm) glad to see her at the helm of Yahoo." Ballmer … Read more

Ballmer's e-mail to employees regarding layoffs

From: Steve Ballmer Sent: Thursday, January 22, 2009 6:07 AM Subject: Realigning Resources and Reducing Costs

In response to the realities of a deteriorating economy, we're taking important steps to realign Microsoft's business. I want to tell you about what we're doing and why.

Today we announced second quarter revenue of $16.6 billion. This number is an increase of just 2 percent compared with the second quarter of last year and it is approximately $900 million below our earlier expectations.

The fact that we are growing at all during the worst recession in two generations … Read more

Microsoft cutting 5,000 jobs on weak results

Microsoft said Thursday its sales and earnings for the December quarter fell well below expectations and announced a series of cost-cutting moves, including its first-ever companywide layoffs.

The software maker said it will cut up to 5,000 jobs, or 5 percent of its workforce, over the next 18 months. About 1,400 jobs were eliminated immediately. The software maker is also paring other expenses, such as delaying salary increases and cutting back on vendors and contractors.

Amid slow PC sales, revenue for the quarter came in at $16.63 billion for its fiscal second quarter that ended December 31, … Read more

PC sales slump to bite even Microsoft

With the PC market tanking along with the rest of the economy, Microsoft is seen as unlikely to be able to live up to the financial forecast it issued in October.

The company is set to release its quarterly earnings after the markets close on Thursday.

In a further sign of just how rough the economy is, Microsoft is also expected to announce shortly its plans for a significant, companywide layoffs. Although Microsoft has cut jobs in a particular unit or location in the past, it has managed to navigate through all past downturns without having to resort to such … Read more