Microsoft to Cut 5000 Jobs

[This post is written and copyrighted by FIRE Finance (http://firefinance.blogspot.com).]

Microsoft, the software giant which has never laid off people till date, has announced that they are going to cut 5000 jobs over the next 18 months, including 1400 immediately. The job cuts will take place in research and development, marketing, sales, finance, legal, human resources and information technology. Some other cost-cutting measures would also be put in place, including a reduction in spending on travel. To quote them:

These initiatives will reduce the company's annual operating expense run rate by approximately $1.5bn and reduce fiscal year 2009 capital expenditures by $700m.

This news is shocking since Microsoft reported a net profit of $4.17 billion for the three months to 31 December, 2008. However they feel that amidst current volatile market conditions, they can no longer provide a profit and revenue outlook for the current fiscal year.

It's definitely going to be a tough year with a dwindling economy and huge job cuts :(.

Related Posts