Microsoft Cuts 800 More Jobs
Software giant Microsoft Corp. announced on Wednesday that it will be trimming off 800 more jobs on top of the 5,000 layoffs announced at the beginning of the year.
"Earlier this year, we announced that in order to reduce costs, increase efficiency and prioritize our focus areas, we would eliminate approximately 5,000 positions by June 2010," Microsoft said in a statement.
The initial 5,000 cut jobs represent about 5 percent of the 96,000 employees there before June 2010. A Microsoft spokesman said that the plan was changed to include new layoffs and is officially complete, ahead of schedule, reported Reuters.
"Today, we are eliminating around 800 positions spread across multiple businesses and locations and have completed our reduction plan sooner than we had anticipated 11 months ago," the statement said.
Microsoft spokesman Lou Gellos said, "What this is is the end of the effort that was announced by (Microsoft chief executive Steve) Ballmer and Microsoft in January."
"At the same time, we continue to hire in priority areas, but also understand that continuing to manage our businesses closely, as we always do, can mean additional headcount adjustments," the Microsoft statement said.
These two cuts mark the biggest layoff in the history of the Redmond, Washington-based company, which was down to 91,005 employees at the end of September, reported AFP.
Last month, Microsoft reported that its net profit had dropped 18 percent in the first quarter of its fiscal year to 3.57 billion dollars, or 40 cents per share, from 4.37 billion dollars, or 48 cents per share, a year ago.
Its revenue had fallen by 14 percent in the quarter ending on September 30 to $12.92 billion.
Even though it was the third quarter in a row to lose revenue, it still dropped far more than the $12.37 billion expected by analysts.
It is believed that a weak worldwide demand for personal computers is to blame for the plummeting numbers.
The company founded by Bill Gates is holding out for a boost from the last month’s launch of the much anticipated next-generation operating system Windows 7.
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