Feeds

Microsoft looks for $1bn savings

Ballmer memo calls for belt-tightning

  • alert
  • submit to reddit

Eight steps to building an HP BladeSystem

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

Mobile application security vulnerability report

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.