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Win Mobile, Zune seeing bulk of MS layoffs?

updated 09:25 am EST, Fri January 23, 2009

Win Mo and Zune MS Layoffs

Microsoft's mobile and entertainment teams may be facing the brunt of the company's 1,400 immediate layoffs, according to sources for journalist Mary Jo Foley. Although it was the client division that handles desktop Windows and Office whose revenues declined year-over-year in the fall, most of the near-term job cuts are allegedly taking place in the Entertainment and Devices group that handles Windows Mobile, Xbox 360 consoles and Zune media players. Windows engineering chief Steven Sinofsky has reportedly said his operating system division isn't affected by any of the cuts.

A breakdown of which specific device teams are affected isn't available, nor are the particular types of jobs being cut.

Microsoft is nonetheless known to have a mixed track record in the hardware-focused group. The Xbox division is increasingly considered the most successful and sold six million consoles this holiday in addition to first-party games and third-party licenses. Windows Mobile has also slightly performed slightly below average and missed sales targets this past fiscal year despite the smartphone market growing well in excess of Microsoft's share. Microsoft has rarely posted Zune results beyond reaching the initial million-unit mark in mid-2007 and is believed to have had little success in expanding its market share since then.

Other sub-groups within Microsoft are also believed to be laying off staff and include the Online Services and Microsoft Business unit, which operates within the client section and handles Office as well as some other professional apps.

by MacNN Staff



  1. Parky

    Joined: Dec 1969


    Bye Bye Zune!

    Bye Bye Zune!

  1. slider

    Joined: Dec 1969


    Plays For Sure?

    MĘ is losing credibility in the music arena.

    People kinda invest in these technologies. I'm sure some folks lost money on the Plays for Sure. I wonder it some of those bought Zunes.

    Fool me once, shame on you, fool me twice, shame on me.

    I haven an iPod, and my first iTunes purchase still plays on my newer iPod and iPod Shuffle and soon my iPhone.

  1. UberFu

    Joined: Dec 1969



    Maybe they could combine the divisions and put WinMo on the Zune and see if that might make a difference.

  1. Guest

    Joined: Dec 1969


    WM outsells iPhone

    Here's a story with growing coverage.

    During the last quarter Q4 2008, Windows Mobile outsold Mobile OSX 4.4 to 5 million, despite Apple's huge advertising push.

    Why is Electronista not covering this story?

  1. Peter Bonte

    Joined: Dec 1969



    Balmer practically said that Zune would be integrated into the next Windows mobile, that is indeed the next step. There is some room for basic iPods but not so much for Zune.

  1. nat

    Joined: Dec 1969



    "During the last quarter Q4 2008, Windows Mobile outsold Mobile OSX 4.4 to 5 million"

    how many phones does wm come on? how many low end phones?
    what a stupid comparison. how's wm mobile doing in the smart phone arena?

    i guess ms won't be dumping billions of dollars into the zune like they did the xbox to keep it on the market. without the office/windows cash cow subsidizing it there would be no xbox. it certainly didn't "compete" in the market.

  1. slider

    Joined: Dec 1969


    Re: WM outsells iPhone

    Interesting, how long has WM been available? How long as iPhone been available. Let's see how the numbers look next year.

    Stupid post.

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