Microsoft expansion to take a hit to cut costs Options

[Xbox-Scene]

Microsoft expansion to take a hit to cut costs Posted by XanTium | January 20 22:34 EST | News Category: Xbox360

From seattlepi: [QUOTE] When Microsoft Corp. reports its second-quarter earnings Thursday, the company is expected to outline a series of cost-cutting measures, which will include postponing most of its plans to further expand its facilities across the Puget Sound region. An internal planning and scenario PowerPoint presentation reviewed by the Seattle P-I shows that Microsoft is set to delay the construction of all new buildings in Redmond, except one, for at least three years. The company also will not renew most of its leases when they come up for renewal this year and next. The changes are driven by the deteriorating global economic situation, which has led to a steep hiring slowdown by Microsoft. It is unclear whether the company will lay off any employees, as has been rumored, this week. In recent years, Microsoft has launched a major expansion of its Redmond campus, including a 1.1 million-square-foot complex for its Entertainment and Devices Division. Some of the complex is under construction, and work will not stop. [/QUOTE] Full Story: seattlepi

[Chancer]

Shareholder pressure? Perhaps the 360 should have remained at its previous price level. Is this a case of the whole company paying for a certain division or more of a general thing throughout the company. Sign of today's climate for sure and it will get worse.

[utopaline2]

most companies are doing this. it's not because they are in trouble, it's because they don't want to get in trouble. M$ is a zero debt company, and to stay that way they need to take precautions. The 2 companies I work for are doing the same, shaving head office positions (high pay) and stopping construction of new stores to keep the money in the company longer. Look at Circuit City, 3 months of bad sales bankrupted the company. They may have been the largest big box electronics store chain, but they did all that with massive amounts of bank loans. Best Buy is zero debt, and are going to be fine even with a not so great season of sales. The companies I work for could have a few bad years and still be fine.

Uto

[g8crapachino]

Shareholder pressure? Perhaps the 360 should have remained at its previous price level. Is this a case of the whole company paying for a certain division or more of a general thing throughout the company. Sign of today's climate for sure and it will get worse.

More often then not, things are exactly as you read them so what's the point of speculating and starting potential rumors with talk of Shareholder pressure, 360 pricing and such? Utopaline2 probable hit it right on the head and they are doing this to avoid trouble, not to get out of it.

This post has been edited by g8crapachino: Jan 21 2009, 08:55 PM