Thursday, January 22, 2009

Microsoft Cuts 5,000 Jobs

Redmond-based Microsoft said Thursday that it is eliminating up to 5,000 jobs at the firm, across R&D, marketing, sales, finance, legal, HR, and IT, as the software giant has been impacted by the global economy. Microsoft made the announcement after reporting declines in operating income, net income, and EPS for the last quarter. The firm said that 1,400 of the job cuts are being made today, with the remainder over the next 18 months. The company said the cuts will reduce the company's annual operating expense run rate by approximately $1.5 billion, and cut capital expenditures for fiscal year 2009 by $700M.