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Microsoft Confirms Plans of Laying off 5000

With the economic recession getting worst and one or the other company going bust everyday, Microsoft too seems to have got into the grips of recession fever. Today, Microsoft announced that over the next 18 months, company would be laying off 5000 people from various units. Microsoft’s layoff plan rumors were doing rounds on the internet since sometime now. Earlier many reputed blogs had written about Microsoft’s 10% work force reduction plans. 

In an email to the employees , Steve Ballmer wrote

As part of the process of adjustments, we will eliminate up to 5,000 positions in R&D, marketing, sales, finance, LCA, HR, and IT over the next 18 months, of which 1,400 will occur today. We’ll also open new positions to support key investment areas during this same period of time. Our net headcount in these functions will decline by 2,000 to 3,000 over the next 18 months. In addition, our workforce in support, consulting, operations, billing, manufacturing, and data center operations will continue to change in direct response to customer needs.

Image: Microsoft Shares are down.

Image: Microsoft Shares are 10% down following results and Layoff announcement.

 

With regards to the results, for its second quarter, Microsoft posted net income of $4.17 billion – a figure 11 percent lower the $4.71 billion reported in the comparable period last year. Microsoft’s revenue for the quarter rose 2 percent year-over-year to $16.63 billion.

Microsoft’s earnings of 47 cents during the quarter missed the forecast from Thomson Reuters by 2 cents.

A few weeks back, another technology giant, Nortel, had to face the worst of recession. Nortel has filed for Bankruptcy protection. Circuit City, a large retailer from America too has shut shop following the recession and cost issues. 

 

 

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This entry was posted on Thursday, January 22nd, 2009 at 11:14 pm and is filed under Microsoft. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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