Thursday, January 22, 2009

Microsoft has first ever large layoff: but what about Netbooks?


Major network media outlets today made a lot of the fact that Microsoft (MSFT) is instituting its first-ever mass layoff, over 5000 people in the next 18 months. It’s net income was 47 cents a share in 4Q 2008, compared to 50 cents a share in 2007. Microsoft did not have to do a major job cut during the dot-com bust or 2001 recession, and, if anything, seemed to come out stronger then with all the industry consolidation.

But a lot of media outlets are failing to report that Microsoft’s earnings could be eroded by the sale of stripped down Netbooks, which run on Linux (which a lot of techies prefer). Preston Galla has a blog entry on Computerworld, “Netbook sales are killing us,” link here.

The Wall Street Journal has a subscriber entry maintaining that Microsoft is crying wolf.

Microsoft's new Windows 7 is attracting a lot of press, enough to make me bypass Vista altogether, perhaps.

Google reported 2008 results today, with a comprehensive press statement here. Yes, some companies are doing much better than most everyone else during this downturn.

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