Posted on 22 Jan 2009
Microsoft Corp. announced today that it will cut 5,000 jobs over the next 18 months, marking its first-ever major round of layoffs as the recession drags down demand for personal computers.
The world's largest software company also reported an 11% drop in fiscal second-quarter net income and pulled its financial outlook for the year. Microsoft shares fell 8% dragging down the broader market, as the results fell short of Wall Street's already reduced expectations.
Chief Financial Officer Chris Liddell said management is planning for economic uncertainty to continue through the fiscal year, "almost certainly leading to lower revenue and earnings for the second half."