Skip to main content

Microsoft Layoffs – 1400 today, 5000 over the next 18 months

Microsoft missed Q2 revenue and earnings forcasts. Revenue was $16.63 billion versus $17.08 billion expected. EPS was $0.47 a share, below $0.49 expected.  So what to do?

Microsoft today announced they’d be laying off 5,000.  Cuts will come across all divisions, including: "R&D, marketing, sales, finance, legal, HR, and IT" which Microsoft hopes will save it $1.5 Billion/year.

In light of the further deterioration of global economic conditions, Microsoft announced additional steps to manage costs, including the reduction of headcount-related expenses, vendors and contingent staff, facilities, capital expenditures and marketing. As part of this plan, Microsoft will eliminate up to 5,000 jobs in R&D, marketing, sales, finance, legal, HR, and IT over the next 18 months, including 1,400 jobs today. These initiatives will reduce the company’s annual operating expense run rate by approximately $1.5 billion and reduce fiscal year 2009 capital expenditures by $700 million.

For some more interesting stuff check what makes Microsoft tick here:

Statements in this release that are "forward-looking statements" are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors such as:

    — challenges to Microsoft’s business model;
    — intense competition in all of Microsoft’s markets;
    — Microsoft’s continued ability to protect its intellectual property
       rights;
    — claims that Microsoft has infringed the intellectual property rights of
       others;
    — the possibility of unauthorized disclosure of significant portions of
       Microsoft’s source code;
    — actual or perceived security vulnerabilities in Microsoft products that
       could reduce revenue or lead to liability;
    — government litigation and regulation affecting how Microsoft designs
       and markets its products;
    — Microsoft’s ability to attract and retain talented employees;
    — delays in product development and related product release schedules;
    — significant business investments that may not gain customer acceptance
       and produce offsetting increases in revenue;
    — changes in general economic conditions or the availability of credit
       that affect the value of our investment portfolio or demand for
       Microsoft’s products and services;
    — adverse results in legal disputes;
    — unanticipated tax liabilities;
    — quality or supply problems in Microsoft’s consumer hardware or other
       vertically integrated hardware and software products;
    — impairment of goodwill or amortizable intangible assets causing a
       charge to earnings;
    — exposure to increased economic and regulatory uncertainties from
       operating a global business;
    — geopolitical conditions, natural disaster, cyberattack or other
       catastrophic events disrupting Microsoft’s business;
    — acquisitions and joint ventures that adversely affect the business;
    — improper disclosure of personal data could result in liability and harm
       to Microsoft’s reputation;
    — outages and disruptions of online services if Microsoft fails to
       maintain an adequate operations infrastructure;
    — sales channel disruption, such as the bankruptcy of a major
       distributor; and
    — Microsoft’s ability to implement operating cost structures that align
       with revenue growth.
 

FTC: We use income earning auto affiliate links. More.

You’re reading 9to5Mac — experts who break news about Apple and its surrounding ecosystem, day after day. Be sure to check out our homepage for all the latest news, and follow 9to5Mac on Twitter, Facebook, and LinkedIn to stay in the loop. Don’t know where to start? Check out our exclusive stories, reviews, how-tos, and subscribe to our YouTube channel