Windows Vista has been Microsoft’s annoyance probably since the beginning of the operating system. The last quarter, of course wasn’t any exception. In spite of a decline in client software revenue, one analyst says the workforce reduction Microsoft revealed last Thursday is healthy, at least from the enterprise IT shops' view.
When an earning report was released by Microsoft on Thursday, the company pointed out that it would lay off up to 5,000 workers or 5 percent of its total headcount. It also specified that software client revenue as in Windows Vista lowered by 8 percent.
Neil MacDonald, an analyst at Gartner said that Windows Vista didn't do well. He added that according to their information, many clients are avoiding Windows Vista. Actually, nearly every other major analyst company found a similar lack of Vista adoption, including Forrester Research which likened the OS to the failed New Coke. 
All the attention is on Vista. Traditionally, it is the source of a massive portion of the company's revenues and profits. The main problem certainly is that the sale of Windows is closely tied to the sale of PCs. With PC sales on the decline because of general economic conditions Vista sales have also fallen.
Last Thursday, Microsoft declared that the job cuts are going to span research and development, marketing, sales, finance, legal, human resources, and IT over the next 18 months, starting on Thursday when the first 1,400 jobs are going to be cut.
Resources:
Layoffs of Microsoft: Can Vista be blamed?
Vista is the main reason for Microsoft's layoffs
Microsoft is going to lay off 5,000 workers