Microsoft news: layoffs, tax and pay, pay, pay
Rumours
have been circulating since mid-December that Microsoft plan
to layoff 10-17% of its 91,000-strong global workforce next week. The
date of January 15th has been cited as it falls neatly between the
launch of the public beta of Windows 7 and the company's
next quarterly earnings call.There are lots of "no comments" at the moment, but the axe is expected to fall hardest on the Entertainment & Devices and the Online Business divisions along with MSN and the European, Middle Eastern and African sales groups. No rumours about local jobs -- yet.
* * *
Things are tough for the old monopolist. After all, they did pay a whopping 0.038% tax in 2007. According to Irish public service broadcaster RTE;
| Accounts for Microsoft Ireland Research, an Irish subsidiary of the global software giant, show that the company paid just €460,000 in tax, on profits of more than €1.2 billion last year, by using provisions in Irish tax law to take its corporation tax bill down from €158m. Much of Microsoft's international profits are channelled through Ireland, but because the main company for Microsoft's activities has unlimited liability, it does not have to file detailed accounts. |
To put that in perspective, imagine earning $100,000 and giving the IRD $38.
* * *
On Christmas day Micrsoft received a US patent for pay-as-you-go computing. The idea is that you buy a cheap PC and only pay for software you use, each time you use it -- a bit like the way you pay for electricity or the phone.
While it might appeal to some, it strikes me as a foot in the door for an unprecedented level of user surveillance. Not only will Microsoft know what you're doing, when and for how long, but they'll have a name, address and credit card number to go with it. Imagine the possibilites of tying that sort of data to search engines or advertising agency browser spies.
It also begs a lot of questions. What if your machine gets hijacked and Outlook fires off a million spam messages at a cent a pop? Ooops. That'll be $10,000 please.
According to one source, internet browsing will cost US$0.80 per hour. But surely that's what Microsoft will pay users for putting up with Internet Explorer...
Still, there is an alternative. It's called free-as-you-go. All the software you could ever want, for nothing. It's known as Linux!

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Comments
Geoff, how about a blog post regarding the coming Guilt Upon Accusation copyright law? If you aren't writing one already that is... :)
Posted by: Daniel | January 7, 2009 6:58 PM
Adds a whole new dimension to the phrase "Microsoft Tax" ;-)
Posted by: Grant Paton-Simpson | January 5, 2009 9:03 AM