Microsoft cuts 5000 jobs

http://money.cnn.com...index.htm?cnn=yes

Software giant Microsoft announced Thursday it will cut 5,000 jobs in the next year and a half, citing further deterioration of global economic conditions.

The company also posted lower fiscal second-quarter earnings that missed analysts' forecasts.

Microsoft will slash 1,400 positions immediately, with the rest of the cuts coming by June 2010. The company said it will save about $1.5 billion in operating expenses and $700 million in 2009 capital expenditure.

Not huge cuts, but big news for a company that normally doesn't cut anybody. The combination of Vista's terrible performance and a generally bad economy are hitting hard.

Microsoft is not in any danger, their position in the market is eroding but it's still the dominant one. And Gate's very fiscally conservative stance works in Microsoft's favor in the current market. But it is a strong sign of just how much their position has eroded that they feel the need to do this. Microsoft has reached the point where Windows 7 is a an important turn around product, if it isn't strong they could lose control of the market.

Jay

Post #302,846 by jay 1/22/09 9:55:12 AM Reply	Microsoft cuts 5000 jobs http://money.cnn.com...index.htm?cnn=yes Software giant Microsoft announced Thursday it will cut 5,000 jobs in the next year and a half, citing further deterioration of global economic conditions. The company also posted lower fiscal second-quarter earnings that missed analysts' forecasts. Microsoft will slash 1,400 positions immediately, with the rest of the cuts coming by June 2010. The company said it will save about $1.5 billion in operating expenses and $700 million in 2009 capital expenditure. Not huge cuts, but big news for a company that normally doesn't cut anybody. The combination of Vista's terrible performance and a generally bad economy are hitting hard. Microsoft is not in any danger, their position in the market is eroding but it's still the dominant one. And Gate's very fiscally conservative stance works in Microsoft's favor in the current market. But it is a strong sign of just how much their position has eroded that they feel the need to do this. Microsoft has reached the point where Windows 7 is a an important turn around product, if it isn't strong they could lose control of the market. Jay
Post #302,847 by malraux 1/22/09 10:09:01 AM Reply	Sign of the times. and: pleasebeweak, pleasebeweak, pleasebeweak... ;-) Regards, -scott Welcome to Rivendell, Mr. Anderson.
Post #302,941 by boxley 1/23/09 9:41:19 AM Reply	director of IE and security was let go nice guy too
Post #302,944 by Another Scott 1/23/09 10:12:33 AM Reply	Cringely says they should cut 50k, not 5k. http://www.cringely..../bob-the-impaler/ These cuts by MS remind me of their stock buybacks - they ended up not changing the amount of stock outstanding because of them issuing stock for employee compensation. In this case, they're apparently not cutting as much as normal attrition. And Bob doesn't mention contractors.... IOW, overall it's MS being MS even though they say they're changing (though I'm sure some good people will be cut). Cheers, Scott.

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