26 Jan 2009

Why the Microsoft Layoffs?

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InfoWorld points to Vista.

Windows Vista has been trouble for Microsoft perhaps since the operating system’s beginning. And this last quarter was certainly no exception. Despite a dip in client software revenue, however, one analyst says the workforce reduction Microsoft detailed on Thursday is healthy — at least from enterprise IT shops’ perspective.

When Microsoft released its earnings report on Thursday, the company indicated not only that it would lay off up to 5,000 workers or 5 percent of its total headcount but also that software client revenue — as in Windows Vista — sank by 8 percent.

“Windows Vista didn’t do well. Based on our data, a lot of clients are skipping Windows Vista,” says Neil MacDonald, an analyst at Gartner. Indeed, nearly every other major analyst firm found a similar lack of Vista adoption, with Forrester Research likening the OS to the failed New Coke.

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One Feedback on "Why the Microsoft Layoffs?"

Scott D

Post hoc ergo propter hoc. Microsoft has become as bloated as any other huge, sloppy company. These are actions that they should have taken anyway. The downturn has simply made it more immediately imperative — and less alarming.



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