Feeds

Microsoft looks for $1bn savings

Ballmer memo calls for belt-tightning

  • alert
  • submit to reddit

Beginner's guide to SSL certificates

Microsoft aims to cut $1bn from its expenses this year and even the company's famous free drinks policy might get the chop.

In an email to staff, chief executive Steve Ballmer warned that expenses have grown faster than revenue for the last three years - and this cannot continue. Free towels have gone from company locker rooms and the free soft drinks could be next. Ballmer told The Seattle Times: "We are looking to take the cost out of the delivery of soda pop. That may mean going from coolers to soda dispensers."

Much of the savings will come from better management of advertising and marketing spend but employee benefits are also being targetted. Health benefits and stock options for US employees have already been reduced.

Ballmer's mail defended the changes and said staff were still well treated: "We still have absolutely the best benefits program in the world."

He called on staff to focus on "Integrated Innovation. [This] is about a customer experience where using Microsoft products together gives you a "whole" that is greater than the sum of the parts. It is not about creating technical dependencies across groups for their own sake."

Ballmer said the company remains committed to technical innovation and is filing more than 2,000 patents a year - which is likely to increase. He also noted that the company has settled many of its legal battles. ®

Related stories

Sun settles with MS for $2bn (ish)
MS moves into get Longhorn on the road mode
Ballmer cheers Apple's iPod with Monkey Boy Dance

Beginner's guide to SSL certificates

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
DOUBLE BONK: Testy fanbois catch Apple Pay picking pockets
Users wail as tapcash transactions are duplicated
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
Microsoft EU warns: If you have ties to the US, Feds can get your data
European corps can't afford to get complacent while American Big Biz battles Uncle Sam
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.