Microsoft's Staff Reductions Directly Related to Success of Netbooks
We've covered the growing popularity of Linux- and Windows-based netbooks several times, including the threat they represent to standard notebooks, and their ability to put open source software in front of millions of new users. Today, JKOnTheRun shows without any question that all of this is not lost on Microsoft. The software giant announced today that it is laying off 5,000 employees following a $465 million shortfall in OEM revenue, and this was cited as an explanation in the 10-Q filing: "“The decline in OEM revenue reflects an 11 percentage point decrease in the OEM premium mix to 64%, primarily driven by growth of licenses related to sales of netbook PCs, as well as changes in the geographic and product mixes." Check out JKOnTheRun's thoughts on whether there is anything Microsoft can do about the trend.