Microsoft Slashes 5,000 Jobs

Illustration for article titled Microsoft Slashes 5,000 Jobs

Microsoft is cutting 1,400 jobs today and another 3,600 over the next 18 months in the wake of today's news of a 11 percent drop in fiscal second-quarter net income, the company announced today.


The cuts will be in R&D, marketing, sales, finance, legal, HR, and IT. These reduction will reduce the company’s annual operating expense by about $1.5 billion and reduce fiscal year 2009 capital expenditures by $700 million.

“While we are not immune to the effects of the economy, I am confident in the strength of our product portfolio and soundness of our approach,” said Steve Ballmer, chief executive officer at Microsoft. “We will continue to manage expenses and invest in long-term opportunities to deliver value to customers and shareholders, and we will emerge an even stronger industry leader than we are today.”

No word yet on if or how this will affect the company's Xbox 360 division, though the earnings report found that the entertainment and devices division had sales growth of 3.5 percent.

The news follows on the heels of Sony's announcement that they are planning "headcount reduction" In game, music and movie divisions.



We know the sectors in which jobs have been cut, but do we know exactly what positions they were? I am sure they were all fine people, but I wonder when we have such sizable lay-offs from companies like MS that seem to have the money not to run into these problems, who lost their jobs. Was it an important decision-making guy who pulls in 5 figures, or was it the assistant janitor? I'm not trying to speculate or flamebait, I'm just generally curious.