In the latest quarter, its earnings fell to $4.17 billion, or 47 cents a share, from $4.71 billion, or 50 cents a share, a year ago.
Revenue edged up slightly to $16.63 billion from $16.4 billion from a year ago.
This is a disgrace. This is a company that mints money. They posted a $4 billion quarterly profit (albeit less than the same quarter a year ago) and they’re going to layoff 5,000 people??
Why? They can’t find the money? Whatever happens in coming quarters, Microsoft is going to be turning a big, fat profit. This is as unpatriotic, as heartless, a move as a company can make. To be clear…they are extremely profitable. This move is undertaken to boost the stock price (I own it), which has languished for-seemingly-ever. I understand that the market thinks Microsoft’s model is doomed and that Google and Apple are going to lead us into a brave new world of computing in its myriad forms, but give me a break. It’s 4 billion dollars a quarter! Every quarter! Microsoft can buy it’s place in the brave new world.
They are not going anywhere and will be turning profits for decades to come. Watch.
In the meantime, they’ve got to get their heads screwed on correctly. Save the jobs. Move people around and let them innovate.
And while you’re at it, start paying a big, fat dividend.