Bloomberg is reporting that Microsoft will be laying off as many as 5,000 employees in effort to save money in this tough economic climate. Notably, this is the first time that Microsoft has resorted to company wide firings.
The reductions, about 5 percent of the workforce, will take place in almost all areas and help save $1.5 billion a year, the company said today in a statement. Microsoft also posted second- quarter sales and profit that missed projections, prompting the company to pull its full-year forecast.
Chief Executive Officer Steve Ballmer is under pressure to reduce costs as personal-computer sales slow and companies curb software purchases in what may be the worst recession since World War II. Microsoft’s Windows division, about a quarter of revenue, suffered a sales decline that surprised the company as customers opted for machines with cheaper versions of the operating system.
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Thu, Jan 22, 2009
Finance, News