What was the cause of Microsoft slashing 5000 low paying jobs?
Microsoft Corp. will make the first mass layoffs in its 34-year history, cutting 5,000 jobs as demand for personal computers falls and even one of the world’s richest companies gets burned by the recession. The software maker also is looking to cut what it spends on contractors and vendors by up to 15 percent – which could delete an additional 5,000 jobs or more at those companies, said one Microsoft official. The Microsoft layoffs, starting with 1,400 on Thursday, will affect workers in research and development, marketing, sales, finance, legal and corporate affairs, human resources and information technology. About 870 of Thursday’s job cuts will be positions in the Puget Sound area. Microsoft also is trimming costs for travel, freezing wages and scaling back a massive expansion to its Redmond campus. The company announced the cuts Thursday as it reported an 11 percent drop in second-quarter profit, which fell short of Wall Street’s expectations. Microsoft shares plunged more than 10
Microsoft Corp. said Thursday that it planned to cut thousands of jobs because of the current recession, in a move that underscores the difficulty even some of the most stable U.S. companies are having in dealing with these hard economic times. The Redmond, Wash.-based software maker announced the job cuts Thursday as it released lower-than-expected quarterly earnings. In a highly unusual step, the company also said conditions were so uncertain that it could not accurately forecast its earnings and revenue for the coming six months. Microsoft executives could only say that they didn’t expect conditions to improve soon for the company or for the economy. Sources: http://www.msnbc.msn.
