Microsoft Drops 5,000 Jobs

Author
Aron Schatz
Posted
January 22, 2009
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20692

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This is the first time Microsoft is slashing its workforce in such numbers. The economy is really screwing up some companies.

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The software maker said it will cut 5,000 jobs, or 5 percent of its workforce, over the next 18 months. About 1,400 jobs were eliminated immediately. The software maker is also paring other expenses, such as delaying salary increases and cutting back on vendors and contractors.

Amid slow PC sales, revenue for the quarter came in at $16.63 billion for its fiscal second quarter that ended December 31, up just 2 percent from a year ago and roughly $900 million less than the company previously projected. Per-share earnings came in at 47 cents, also below forecasts.

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