back to article More layoffs at Microsoft: What's really going on here?

Microsoft plans to lay off about 1,000 people across the tech giant, despite what CEO Satya Nadella described during the corporation's April earnings call as "a record third quarter." While reports have suggested Microsoft would cut as many 1,500 people just from its Azure for Operators group, The Register has been told that …

  1. sedregj Bronze badge
    Childcatcher

    Mixed Reality group

    "... the layoffs are spread out across more business units, including the company's Mixed Reality group"

    What on earth are they smoking? There is reality and unreality - its an either/or binomial thing. Reality is not a scale from real to Truss, nor a zoo of things that swim in and out of ... reality.

    Perhaps you join a Mixed Reality group and find out that you work in reality in return for mixed (reality) rewards. Here have a P45 (US version of) for your hard work! Yay \o/

    1. Benegesserict Cumbersomberbatch Silver badge

      Re: Mixed Reality group

      There is reality and unreality - its an either/or binomial thing.

      exp(iπ)=-1

      1. Snowy Silver badge
        Coat

        Re: Mixed Reality group

        More like schrodinger's reality and both at the same time?

        1. el_oscuro
          Coat

          Re: Mixed Reality group

          Is that like managing to both having tea and no tea, without your brain exploding?

    2. neilg
      Coffee/keyboard

      Re: Mixed Reality group

      "from real to Truss"

      You, Sir, See icon.

      1. Fruit and Nutcase Silver badge

        Re: Mixed Reality group

        Have to wait and see after the election to see what Truss does to regain reality, or rather, peddle her version of reality

    3. Roland6 Silver badge

      Re: Mixed Reality group

      Mixed Reality was the “next big thing” a few years back; expect similar (or even higher levels of redundancies) to happen in the various AI groups in a couple of years…

      1. Elongated Muskrat Silver badge

        Re: Mixed Reality group

        How's that 3D TV holding up? Anyone? Anyone? Bueller? Anyone?

      2. Helcat Silver badge

        Re: Mixed Reality group

        The issue has been one of expectations.

        When something like this is marketed as the 'next best thing' rather than having an initial, defined use for the tech to form a foundation from which they can expand, there's no way it'll deliver on what's being promised.

        Hence people expect the tech to work wonders, then it fails to deliver and people walk away. Meanwhile, if we're lucky, the tech is developing quietly, building that foundation, and from that we get something that actually is quite useful.

        AKA: Blame marketing. They promised us rainbow farting unicorns instead of what can be achieved.

        1. Elongated Muskrat Silver badge

          Re: Mixed Reality group

          It's a classic example of a solution looking for a problem.

          Computers are good at solving well defined and delimited problems quickly.

          Humans are good at processing and understanding natural language, innovation, and creativity.

          LLMs are somewhere in the middle, where they can do neither, but exist in the very small overlap between things that don't need to be done properly, and things that don't need to be understood properly.

  2. Dan 55 Silver badge
    Devil

    Security memo was just playing to the gallery

    Azure's security is a mess, Microsoft should be putting everyone they can on it to go over it with a fine-toothed comb instead of firing people to meet a target on a balance sheet.

    1. UnknownUnknown

      Re: Security memo was just playing to the gallery

      Corporate Nickel and Diming on the Boeing scale.

      What could possibly go wrong.

      1. AndrueC Silver badge
        Facepalm

        Re: Security memo was just playing to the gallery

        What could possibly go wrong.

        I suppose the quality of their products could deteriorate. Assuming it's possible for them to get any worse..

    2. Someone Else Silver badge

      Re: Security memo was just playing to the gallery

      Azure's security is a mess, Microsoft should be putting everyone they can on it to go over it with a fine-toothed comb instead of firing people to meet a target on a balance sheet.

      What? You expect Micros~1 to actually fix something?!? Shirley, you jest!

  3. EricB123 Silver badge

    Goodbye systems engineer, hello sanitation engineer.

    Well, at least the job title still has the word "engineer" in it.

  4. Groo The Wanderer Silver badge

    With Microsquishy's focus on all things their marketing department can label as "with AI!!!(tm)" having it shoveled in regardless of rationality, sanity, relevance, or the wishes of the user community, I think Microsoft is destined to become the next Lotus/Borland. They've massively overspent and continue to overspend on a technology that users flat out do not want!

    1. Anonymous Coward
      Anonymous Coward

      Messed it up[ again

      I have spent many an hour defending LLMs. But now, after 1 week of Copilot on Windows 11 I have lost faith.

      They have destroyed LLMs. All that was great about AI pre-OpenAI ChatGPT3 has been destroyed. They have taken a potentially exciting and useful technology and completely IE4'd it.

      MS have imposed personalised remote LLMs. This is comparable to plastering the internet with photos of yourself and your life in the social media days.

      As a 10-year advocate of AI, I would now advise to stay away from LLMs as much as possible and if you do use it, never ever give any information about yourself.

      1. vtcodger Silver badge

        Re: Messed it up[ again

        never ever give any information about yourself.

        Information about whom? Never heard of him/her. I doubt he/she exists.

    2. Chronos

      Big picture: Current Wintel boxen are quite adequate. They need a new thing to convince people that they need a neural co-processor (and a whole new box to put around it), so AI is that thing. Never mind that nobody in their right mind needs it, they're pitching to people who cross the road (once, hopefully) while staring at their phone screen because it's a Sampple iGalaxy Note 58 Ultra with a DPI figure you need a scanning tunneling electron microscope to discern individual pixel clusters, not for the content. Sadly, it'll work, too. There are more phombies roaming around than technically literate people.

      I still love that Google called their browser "Chrome." Chrome has a very specific meaning in tech circles: Unnecessary but very shiny fluff. This is exactly what this is and it's why both Chrome is the #1 browser and MS's gamble will work; people are stupid.

      There is no Earthly reason Win11 needs that specification level they claim it does, either. It's simply to drive box sales.

      1. Roland6 Silver badge

        Just goes to show that despite all the marketing about Windows being free and people taking up 365 subscriptions, MS are still wanting (needing?) the revenues from OEM system builders bundling Windows.

    3. minnsey231

      I think I've been reading about the imminent demise of MSFT for as long as the imminent demise of the EU/Euro...

  5. Bebu
    Windows

    "technology that users flat out do not want!"

    Probably explains why I am being bombarded with "opportunities" to reserve "my" AI PC by preordering some skimpy Appleish (in price and appearance) notebook. As if?

    Even I were given one of these the first thing I would do would be to "upgrade" the poor thing by removing its unpleasant AI+Windows infestation.

    I imagine the hardware would be pretty decent and with an honest OS would run like the clappers.

  6. Pascal Monett Silver badge
    Thumb Up

    "Measured in executives, Microsoft is laying off about four Nadellas"

    Brilliant. That puts things in perspective indeed.

    I think El Reg should adopt measuring in executives as a standard when talking about company layoffs.

    Well done.

    1. Michael Wojcik Silver badge

      Re: "Measured in executives, Microsoft is laying off about four Nadellas"

      Unfortunately none of the four Nadellas in this case is the right one.

    2. Someone Else Silver badge

      Re: "Measured in executives, Microsoft is laying off about four Nadellas"

      Micros~1 might do well (better) to lay off 4 Nadellas....

  7. Anonymous Coward
    Anonymous Coward

    Most of these jobs will be going from the UK, including London, Edinburgh, and Cambridge. I dodged this bullet myself, mostly by dumb luck.

    1. druck Silver badge

      Take the opportunity to get out on your own terms while you still can.

  8. Tubz Silver badge

    Just sack everybody who was involved in "Recall", job done !!

    1. Doctor Syntax Silver badge

      Far from it. Anyone who has a sense of responsibility or a grasp of reality will be fired. Otherwise one of them might point out its problems.

      1. tiggity Silver badge

        @Doctor Syntax

        Indeed.

        Anyone who suggested Recall was a massive security nightmare would be:

        "Not a team player"

        "Obstructive"

        "Neagtive"

        "Not embodying the company philosophy"

        "Living in the past"

        "A naysayer"

        etc. etc.

        Keep firing until you are surrounded by yes men / women - a philosophy seen in many companies / sections of companies.

        1. hoola Silver badge

          The same reason why older people (over 40) struggle to be employed in tech,

          We are seen to be all of those by fast-track managlement idiots who have no experience so when they want to implement something that is total lunacy and you suggest there are better ways of doing it, all those boxes are ticked.

          Experience means nothing, the only thing that matters is complying with the corporate line that is generally driven be people with absolutely no experience.

          1. cyberdemon Silver badge
            Windows

            There's a startling similarity between the psychology of modern corporate management, and the psychology of cults.. Anyone who dare speak truth to power gets punished and/or banished.

          2. Anonymous Coward
            Anonymous Coward

            This one has really resonated with me. I used to be considered something of a space cadet; interested in pushing the bright ideas and what might be possible.

            17 years in a particular outfit have, though bitter experience, taught me that the same old rope will attempt to be sold again and again. Changes in personnel mean that lessons have to be learned and re-learned the hard way. Rapid changes are rarely improvements and can often backfire. Actual progress is made by redirecting the supertanker with a teaspoon.

            The optimist says perhaps things should not be that way; the realist (and experience) says that giant processes lead to unintended consequences when you fiddle with anything. And the only real way to progress is to build organisation in parallel to transfer over; rather than meddle with the status quot. (Or certain managers headcount-related obsessions).

        2. Scotthva5

          or, in a company I no longer work for, "Mr Doubty Pants", as our CFO used to say to anyone that questioned his numbers.

          1. Anonymous Coward
            Anonymous Coward

            In a former life at a bank, I recall a very senior analyst that I had a lot of time for, being publically fired for calling out over-exposure to sub-prime risk due to how mortgages were being securitised to disguise bad credit.

            2007/08 happened; his analysis was vindicated; and he did subsequently take the former manglement tossers to court.

            The causes? Various gits that feature on that (in)famous photo of Andy Hornby, Boris Johnson and other compatriot cronies content running their little scams and papering over the harsh mistress that is reality hoping they wouldn't get caught. Amongst others, of course, it was a global failure, not just them.

            The consequences? Global financial failures, repossession hell for many, distorted housing markets that only continue to get worse?

            Despite the piles of evidence, it still to this day amazes me that "sticking it to the man" is not universally approved.

  9. Brewster's Angle Grinder Silver badge

    "Microsoft's LinkedIn cut about 400 jobs"

    I need some context. Is that a big number? Because if 401 people work at LinkedIn, that's epic. If 4_000_000 worked there, I guess they'll survive. What 400 worker years of work are not being done at LinkedIn now and would anyone notice? (I bet the people firing them can't even tell us that.)

    1. Someone Else Silver badge

      Go ask CoPilot -- I'm sure it will come up with an answer.

      Whether that answer bears any resemblance to the facts on the ground is anybody's guess. I suppose we could go ask CoPilot...

  10. GraXXoR Bronze badge

    Just more proof that the coming “wave of opportunity” will only lift those at the top and leave the rest of us to drown.

    The idea that any future increase in profits from worker efficiency will be passed on to us even in part is completeTruss.

    1. CJ_C

      Truss

      The use of Truss in this context can only be admired and in future emulated. Thanks!

      1. hplasm
        Happy

        Re: Truss

        Lettuce pray it continues then!

  11. Paradroid

    Pump it

    It's a way to keep pumping the share price (which the top execs are compensated on) while selling products that are getting worse by the week.

    1. el_oscuro

      Re: Pump it

      Here on the other side of the pond, are ARS overlords are reporting record numbers of people taking the plunge and switching to Linux.

  12. Zippy´s Sausage Factory
    Devil

    "While reports have suggested Microsoft would cut as many 1,500 people just from its Azure for Operators group, The Register has been told that number is not accurate and is inflated."

    It's probably 1,499.

  13. ElNumbre
    Coat

    Numbers on a spreadsheet.

    Remember, you're just a row in an Excel spreadsheet.

    Although now I wonder what would happen if you legally changed your name to #DIV/0!

    1. Zippy´s Sausage Factory
      Joke

      Re: Numbers on a spreadsheet.

      #DIV/0 - I know him, isn't he Bobby Tables' cousin?

      1. MachDiamond Silver badge

        Re: Numbers on a spreadsheet.

        "#DIV/0 - I know him, isn't he Bobby Tables' cousin?"

        What? You didn't see the story? Grimes and Elon had another kid.

        1. Zippy´s Sausage Factory

          Re: Numbers on a spreadsheet.

          Oh was that the Grimes-Elon progeny's name? I thought it was just line noise they used.

    2. mcswell

      Re: Numbers on a spreadsheet.

      #DIV/0!

      Do you divide by zero and then take the factorial, or first do zero factorial and then divide? It matters, because 0 factorial is 1, in which case you're just dividing a number by one. But if you first divide by zero...

  14. Snake Silver badge

    Oh please...

    "Organizational and workforce adjustments are a necessary and regular part of managing our business," a Microsoft spokesperson told The Register in an email. "We will continue to prioritize and invest in strategic growth areas for our future and in support of our customers and partners."

    "Organizational and workforce adjustments are a necessary and regular part of managing our business to satisfy Wall Street quarterlies," a Microsoft spokesperson told The Register in an email. "We will continue to prioritize and invest in strategic growth areas for our future and in support of our shareholder investors and market analysts."

    FIFY

  15. Innique

    MS Needs Broken Up

    Just a matter of time before a Ma Bell break up comes. Europe is two steps ahead. How can you say they don't have an anticompetitive stance when I could for 5 years threaten a few more percentage points if they didn't buy my latest and greatest.

    1. el_oscuro

      Re: MS Needs Broken Up

      Can we also break up Facebook, Boeing, Google, Nestle, Unilever, Kroger, Bayer while we are at it?

      1. Mungo Spanner

        Re: MS Needs Broken Up

        I think Boeing needs to stop breaking up

  16. trevorde Silver badge

    Meanwhile at IBM

    [CEO] [looks up from article] Hold my beer!

  17. Anonymous Coward
    Anonymous Coward

    Firing people as an advert for their AI?

    Call me sceptical, but wouldn't it be "weird" if their sales people claimed AI is increasing productivity so much that every worker can do 50% more work and Microsoft itself doesn't fire a lot of people? Then it would undermine the whole sales pitch for Microsoft's Copilot: "With our AI you can do so much more with less people employed and that will save you a small fortune." if they can't show they achieve it themselves. So hence Microsoft "has" to fire substantial numbers of people even during a record quarter. Wait, if they fire them during a record quarter all the better, then they can claim it's a record quarter because their AI increased output while reducing headcount! Double sales pitch bonus!

  18. Michael Wojcik Silver badge

    It's important for the CEO to project certainty and confidence

    we plan to sort of essentially keep taking that forward

    I believe we have Microsoft's mission statement, folks.

  19. Kevin McMurtrie Silver badge

    Need more WARN

    WARN policies were supposed to stop the chaos where mega-corps would rapidly hire and fire on product cycles. It doesn't seem to be working well since 2020.

  20. bigphil9009

    Am I missing something here?

    All these big businesses pushing AI like it's the solution to all our problems are surely missing something - if AI puts significant amounts of people out of a job, these people will no longer be able to purchase any products made by these big businesses who are pushing AI like its the solution to all our problems, resulting in these big businesses suddenly not having any customers. Don't they see this? Or do they see this and the 0.001% of people making these decisions only care about their own pocket and fuck the rest of us?

    1. Someone Else Silver badge

      Re: Am I missing something here?

      Yes.

    2. M.V. Lipvig Silver badge

      Re: Am I missing something here?

      Every company thinks they are the only ones who are doing this, nobody else is. Therefore, their customers are still employed.

  21. Anonymous Coward
    Anonymous Coward

    Stab in the back

    This is a good example of why any Microsoft worker should never feel loyalty to the organisation. They WILL fire you no matter how good or loyal you think you are. As soon as you don't fit in, are deemed not useful you are gone. Follow their example, as soon as you can find a better paid job with better conditions elsewhere fire them.

    I've gotta say though that a salary of $193k sounds pretty hard to top.

    1. Anonymous Coward
      Anonymous Coward

      Re: Stab in the back

      Talking of salaries, I wonder how many UK Microsoft employees get paid $193,000 ( ~£150,000)?

      What does a experienced games programmer get? £100k?

      1. This post has been deleted by its author

        1. Elongated Muskrat Silver badge

          Re: Stab in the back

          I'd say that £55-£75K range was a senior dev's salary, and a tech director (on an actual board) would be on twice that, but what would I know?

    2. druck Silver badge

      Re: Stab in the back

      Don't forget that last year the Microsoft employees who weren't sacked were given a zero pay rise, despite billion of record profits.

      If they didn't get the message that Microsoft doesn't value them after that, they never will.

      1. Anonymous Coward
        Anonymous Coward

        Re: Stab in the back

        Always remember loyalty to the company only goes one way and you'll never be disappointed

    3. Anonymous Coward
      Anonymous Coward

      Re: Stab in the back

      Even the most bitter employees can still feel a strong kinship with their peers when something like this happens. The culture is real, it's not fake or imagined. Maybe I could get more elsewhere, but I don't want to because I love what I do and I love the people I work with. Yeah, it could all go wrong, but this shit can happen anywhere. I just need to remember not to take it for granted.

      $193k does sound nice, but in reality, it's ~£91k for me (including variable bonus) plus a lot of shares and other benefits.

  22. 0laf Silver badge

    Sooner than I thought

    I was willing to bet that AI would cause large scale job losses but I had thought that functional products would be needed first.

    Looks like any company making large investments into AI will be cutting jobs anyway to fund the development of tech which will lead to job cuts.

    Well lets be honest these companies have loads of cash to develop AI and could easily keep employees on but then their shareholders would lose a few percentage points that quarter. So the meatbags have to go.

  23. Anonymous Coward
    Anonymous Coward

    Knowing how tough MS can be to get through the door of, all I'll say is, other employers are available. With considerably less red tape to be concerned by. If you've got the skills, people WANT you.

  24. BinkyTheMagicPaperclip Silver badge

    Job cuts in the mixed reality group

    Given that WMR is being removed in Windows 11 24H2, and has *already* been removed in insider builds (according to Wikipedia, although theReg covered this some months ago too), is it any surprise there are redundancies?

    It's very poor really, seven year old perfectly functional hardware will stop working and presumably cannot be resurrected as VR headsets are pretty much one of the most proprietary and Windows locked technologies out there. True, there were very few VR applications in the Windows Store but that's a reflection on Windows Store, not VR, plenty of Steam apps worked just fine.

    It would be very interesting if Microsoft released the source code under an open source license, but oink flap, that's unlikely.

  25. M.V. Lipvig Silver badge

    So the AI developers are the first to go?

    Can't help but laugh at that.

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