Intel is all set to fire 300 employees in Folsom and Santa Clara.
Intel Corporation has confirmed that it wishes to minimize its workforce the previous week. The reason why the company has come up with this decision is that a downtrend has been in the PC market followed by a weaker revenue stream. According to the recent update, the company has decided to lay off more than 152 employees working at its Folsom Campus by 15th July, FY15. Along with that 165 employees will leave the company’s Santa Clara headquarters as well.In accordance with the recent news, the company has already provided a letter on June 11 to the State Employment Development Department where it has acknowledged the authorities that it will reduce the head count. The reason why they have already acknowledged is that the Worker Adjustment and Retraining Act (WARN) had instructed big organizations that they are required to issue a warning before they actually implement the round of layoff.The news about the massive layoffs which Intel Corporation is about to undergo has been successful in gaining immense traction in the past couple of weeks. The company has decided that it will cut down on the number of employees from 18,600 in the Washington County to a number that remains undisclosed. The company also revealed a memo according to wish they stated that “Yes, we are implementing headcount reductions.”The chief executive officer of Intel, Mr. Brian Krzanich circulated an email at Intel explained that this plan will first hit Arizona and Oregon. The reason why Intel is undergoing a layoff is that it can accommodate all the expenditures to a minimum amount as it faces difficulty in keeping pace with the personal computer market. Moreover, the authorities have also decided that they will reduce almost $300 million the company earlier spent for research and administration purposes.Intel Corp. round of layoffs is primarily due to the “underwhelming” demand of personal computers. This has caused them to face a major setback resulting in a massive layoff. The company faced a loss of $4 billion the previous year in its mobile unit. Hence in a nutshell, Intel is undergoing massive structural changes that will affect them in the long run. Mr. Brian Krzanich has taken a good step to opt for a layoff that will help them to attain stability. However, it is extremely early to predict the future of these layoffs and its impacts will be visible in the times to come. Meanwhile, we can just wait and see what happens next.
The smartphone makers are again to be believed to be going down on the stock index and the analysts have turned overly bearish about it.
BlackBerry has been experiencing quite a troublesome time on the index lately and the analysts in the industry seem to be turned more than bearish towards the stock of the cell phone makers. Recently, analysts at Credit Suisse run coverage on the smartphone making company following the extremely disappointing quarterly report that was released by the Canadian firm in which the equity firm seemed to be at its most bearish. The firm has been deemed as quite weak, it is has been granted with an ‘underperform’ rating by Suisse analysts. The revenue estimations that were made by the industry analysts before the earnings report came out were also not met by the firm which has disappointed investors to the extreme.In the recent research report that has been presented by the analysts at Credit Suisse, it has emerged as a fact that the firm has performed below expectations in the earnings report for the first quarter of 2016. The software revenue that was received by the Canada-based firm came around at $138 million which were seen to increase by 156 percent keeping in mind the previous quarter the firm went through.Even though these figures look positive on the front, the report that was made by Credit Suisse analysts showed that the increase in the revenue in the software firm was not due to the high sales but it was because of the excessive support that was given to licensing revenues which the analysts believe is taking place due to the increasing mergers and take over plans that were gone through. This means that this sales increased in software is not long term and does not determine any strength of the mobile phone makers in the industry.The earnings report for the quarter also showed that BlackBerry business experienced an increase by around 20 percent on an overall basis but this also was not taken to be an exceptional factor by the analysts. The smartphone making company has also reported that it is looking towards growing its business more by the end of the present fiscal year., The total sales received by the company for the full year is expected to come around $500 million by the firm itself, which was stated in the earnings report that was presented two days back.As for the BlackBerry services that were at one point in the industry at their best, have now seemed to experience a dip that it seems difficult to avoid. The earnings report says that the firm has fallen by around 19 percent on the services department which is also being taken as a massive drop.
The media giant is yet again facing issue regarding privacy in the European region as it tries to introduce a new ad feature.
In a recent published news article, it was seen that Facebook Inc has yet again found itself in some unwanted trouble. It has so been informed by the Wall Street Journal reporters that the social media company has been making attempts to introduce a new advertising policy in the European region but die to the watch dogs that have previously been a little too tough on the media site for security reasons, are now having issues with the firm’s ideas again.The watch dogs have increased their surveillance on the social networking site as it has a shaky history of trying to temper with the personal information of the users, something that has become a point of attention for the authorities in the past.
Analysts are of the opinion that till now Facebook has tried to overcome the issues that the authorities in the European region seem to have, but if this continues, it can easily be said the revenue generated by the firm through the user base in the countries based in Europe is going to get affected quite adversely, something that the media company should be ready for. This is also being said as some analysts are of the belief that the ignorance received by the social media giant most of the time where privacy issues are concerned are not going to take it anywhere and at one point, it is going to regret it when revenues fall by a massive difference.
WSJ was seen getting into a discussion with a marketing firm that works in the digital field and it was reported that the firm eMarketer, emerged with the opinion that Facebook has shown little interest in solving the privacy concerns that the European regulators have always come up with which is something that should be taken into consideration by the firm before it is too late.
The digital firm believes that the social media website needs to keep a check on where there are loopholes in its system and solve them. In case it does not do that, the firm informed that no such signs of growth can be shown in which the media giant can grow itself in the region. This will not only make it unpopular in other countries of the world but will also result in it receiving much lesser revenue on an overall basis.
The fact that Facebook enjoys active usage of around 300 million users from countries in Europe is something to be reckoned with and can definitely not be ignored. By losing those valuable users the firm is going to suffer on the cash flow and for that it needs to work on its privacy policies.
The beverage making firm has decided to shift around 500 employees to the headquarters in Atlanta and focus more on real estate business now.
As per recent Coca-Cola news, it has emerged as a fact that the firm has made a plan of bringing back around 500 employees that it previously shifted to the suburbs of Atlanta. The firm has done this before as well and this time around, it is calling back more workers than before to Atlanta’s main plant where the first foundation of the beverage company was established around 130 back. The fizzy drink making firm is carrying plans within the management in order to bring about the much-needed changes that the investors have long been waiting for.Coca-Cola was seen to combine a number of its offices that were being worked in Atlanta into one big workplace which was then entrusted with the responsibility of handling information technology in the region. This new division was established in SunTrust Plaza Offices in Atlanta. According to recent news, the healthy milk drink makers are also considering shifting the whole lot of employees in the Cobb County to the SunTrust offices. Officials from the firm were seen to say that it is undergoing these changes of bringing about all the employees of the energy drink making company under one roof so that the efficiency of the workers increases and more and more productivity can be determined.Coca-Cola is currently looking towards attaining success in its real estate business for which the beverage come has been seen to take the help of Stream Reality in order to increase the market value of the building that is being offered for lease. On the other hand, the new headquarters of the company that is being built up in Atlanta are seen to be one a huge scale in Atlanta, covering about 322,000 square feet land.Apparently, there are companies like RaceTrac Petroleum that are looking for buildings that are of that size in the Cobb County region and also in other areas in Atlanta. It was informed to the press that Coca-Cola business along with Griffin Capital firm is looking at a different prospective that might result in knowing what the future of the 2500 Windy Ridge business is and what the tenants of the building will be experiencing in near future.The fizzy drink makers were further recorded to say that they are looking towards completing their plans regarding their real estate business soon but some of the process are still on the go will be taking the time to complete.
Microsoft only sold 100 units of Xbox One after E3.
Microsoft Corporation did relatively well in pulling off an exceptional show this year. The company’s Electronic Entertainment Expo (E3) was a major success and many perceive that it was successful in even overtaking Sony Corp. for the very first time since its launch in 2013.
The battle between Sony and Microsoft is nothing unheard of where both the companies are trying their best to reign over the industry. This year too, the E3 showcased this rivalry with ample zeal and enthusiasm.
Microsoft utilized this opportunity to showcase the trailers of its popular video games. these trailers were the expected editions of the famous franchises that were shown parallel to HoloLens- which is a headset, that is aimed to enrich the virtual reality experience.
At this point, Microsoft has several things to be worried about regarding its gaming consoles. The company has not done quite well in Japan, however many expected that the game might change for them after their E3 success. But this is not the case anymore since their gaming console sales in Japan are on their all-time low.
According to the data obtained, Microsoft had been successful in only selling 100 consoles in the Japanese market. This is a very disappointing state for the company since the Japanese population accounts to 120 million where only 100 units were sold despite the hype created by E3.
The staggering performance of Microsoft in the Japanese market is not big news since previously the head of Xbox division in Japan also resigned due to the same issue. Their unit sales performance shows that the company is not even trying to revive its position. The tech giant basically started off with selling around 23,562 units only within four days of its launch. In the third week, it sold 1,314 units only which is down to merely 100 now. Clearly the Japanese market has lost imminent interest in the Xbox One since mostly Asian gamers enjoy Sony’s PlayStation comparatively.
On the other hand, Sony has been doing fairly well in this market where 322,000 units of PlayStation 4 were sold in just a matter of 2 days. This is said to be 15 times more sales than what Microsoft Xbox observed during the same time span. Microsoft at this point needs to take several major steps that can help them to redeem themselves but at this point it seems like a relatively difficult task.
The iPhone makers are being questioned about their idea of acquiring Beats and analysts are now anticipating whether the firm will be able to put some quality into the famous headphones hardware devices.
Some analysts have emerged with an opinion in which they believe that the fact Apple took over Beats the previous year does not really make sense, keeping in mind the reputation of the headphones making company which was already quite shaky before it got taken over by the classic smartphone makers. The Beats headphones, which took over the headphone industry with its launch, were seen to attract quite a lot of attention of the users who were fans of music and music devices. These headphones brought about a huge uproar in the market which made all the fans want to get the gadget for their own. The gadget was priced highly at a starting price of $200.However, all the hype which was created for these overly priced headphones turned out to be for nothing as the quality of the gadget was not as expected which disappointed the market at large. The fact that the quality of the sound coming out of these headphones was not good enough turned off quite a lot of users which degraded the product quite a lot. On the other hand, analysts believe that the fact that the Beats headphones were made so popular was because of the hype created by marketing strategies, something that it has similar with Apple Inc.Even though Apple Inc uses extremely influential marketing tactics, it has never really offered a product or gadget to its users which are of substandard quality. So at the time when the iPhone 6 makers signed billion dollar deal to obtain Beats, analysts wondered if the software firm would be able to fix the issues the headphones are usually seen to have.Apple has made its mark in the industry by producing hardware which is always of high quality. Even though the software company uses some products on its gadgets that are of low price to save expenditure, it has never compromised on good quality and this is what the customers of the Apple products are so fond of. This was the reason that analysts were surprised about the fact it acquired Beats, which had many quality issues.Analysts now believe that the tech giant needs to see to the low-quality issues that Beats headphones have repeatedly emerged with and come up something that is capable of competing in the market. On the other hand, analysts also believe that in case Apple business does not have faith in Beats, it is possible in might come up with its own personalized headphones, designed with a special design it uses for the other products.
Microsoft's executive leadership resigns amid structural changes.
Microsoft Corporation’s chief executive officer Mr. Satya Nadella recently announced that the company y is all set to make changes in its internal structure where the chief executive officer of Nokia Corporation, Mr. Stephen Philip and he would opt for retirement in FY15. Despite there is a lack in terms of the company’s leadership team, the aim is to bolster growth and development. The departure of Mr. Nadella and Mr. Philip will allow new leadership to take charge of the company.The restructuring Microsoft has been undergoing has resulted in the departure of several leaders. This includes the team of Stephen Elop, which includes Krill Tatarinov who was a Business Solution executive, Eric Rudder- the founder of Servers and Tools at Microsoft Research Department. Along with the Chief Insight Officer Mr. Mark Penn who will depart to head a private equity firm. These executives have now submitted their resignations.Mr. Nadella is optimistic that the company will do well in the times to come and he has lined up capable employees who can take charge and deploy the strategy of the company along with enforcing the three core ambitions. Mr. Nadella believes that the change will result in better services and products to appeal its diversified consumer base.On par with the several changes being made, Mr. Nadella mentioned that Windows and Devices are likely to be held accountable for Xbox, Microsoft Surface, Microsoft Band, Surface Hub and Hololens division. Currently, Mr. Terry Myerson is heading the Windows 10 development. So now the departure of Mr. Elop will be pleasant change to the company’s ecosystem that will assist in opening new horizons for the company ensuring innovation.However, the Vice President of Enterprise and Cloud, Mr. Scott Guthrie will continue to lead the department. According to BidnessETC, “The Dynamics development team is expected to be another addition to the C and E division that should catalyze the ERP and CRM tasks, so it can also focus towards product innovations.”Likewise, the vice president for Applications and Services Group, Mr. Qu Lu will continue to serve the company. The division under the able leadership of Mr. Lu will work towards a productive ecosystem. The team of Mr. Lu will work towards expanding the productivity apps on the digital platform for both Business and Personal clientele.Hence, in a nutshell Microsoft products are likely to get better in the times to come with all the restructuring taking place in the company.
