5 Companies That Had A Rough Week

The Week Ending Sept. 19

This week's roundup of companies that had a rough week includes Oracle and Larry Ellison's departure as CEO; Microsoft and its latest round of layoffs; Apple's HealthKit bug; Toshiba killing off its consumer PC division; and IBM telling a subset of its employees to update their job skills and -- surprise -- you are receiving a 10 percent pay cut.

Ellison Steps Asides As Oracle CEO: End Of Era

Oracle co-founder Larry Ellison said he would step down as CEO after 37 years at the helm of the business software maker, passing the reins to his two co-presidents, Safra Catz and Mark Hurd.

After several consecutive quarters of lackluster earnings and ongoing struggles in hardware, Ellison appears to have decided to get closer to Oracle's technology development. "Larry's going back into the garage," one longtime Oracle partner told CRN. "The vertical integration story hasn't been working."

Microsoft Shuts Down Silicon Valley Research Lab, Lays Off 2,100 Employees

Microsoft said Wednesday it's pulling the trigger on another round of layoffs and notifying 2,100 employees that their jobs are being cut. The cutbacks also include the shuttering of Microsoft's respected Silicon Valley research group.

Microsoft's layoffs are part of the company's previously announced plan to eliminate 18,000 jobs around the world.

Apple Under The Weather

It was a big week for Apple with its latest iPhones going on sale Friday. But Apple had to take the good with the bad. On Wednesday Apple said it would have to delay the release of its iOS 8 HealthKit feature to developers because of a bug. HealthKit is a new tool that allows developers to have health apps and devices interface with Apple iOS 8.

"We're working quickly to have the bug fixed in a software update and have HealthKit apps available by the end of the month," Apple said in a statement.

Toshiba Bows Out Of Consumer PC Business: Cuts 900 Jobs

Toshiba said Thursday it was throwing in the towel when it comes the cutthroat, low-margin, commodity consumer PC business. As part of a restructuring effort of its computer business unit, Toshiba said it was also laying off 900 employees as part of cost-saving measures.

Toshiba is not getting out of the PC business, however. In a news announcement on Thursday it said it would redouble its efforts to drive business PC solutions.

IBM Gives Some Employees A 10 Percent Pay Cut

IBM confirmed a report on Monday it has initiated a mandatory training program for employees within its Global Technology Services group. Training program participants, according to a memo obtained by the Computerworld website, will also get hit with a 10 percent salary reduction.

The memo reads:

"Some managers and employees have not kept pace with acquiring the skills and expertise needed to address changing client needs, technology and market requirements."
According to the Computerworld report, salaries will be restored on April 1, 2015, once the training program has been completed.