Microsoft cuts 5000 jobs
January 22, Microsoft announced plans to cut 5000 jobs over the next 18 months, with 1400 employees being retrenched on the day.
The job cuts are a direct result of a decrease in profit margins. Fourth-quarter profits at Microsoft are down 11% to $4.17 billion dollars, with revenue up 2% to 16.6 billion.
This after news that Microsoft’s old rival Apple has recently recorded their biggest quarter ever. Apple recorded $1.61 billion in profits and $10.17 billion in revenue, significantly smaller than Microsoft but showing signs of growth.
Of course a large portion of Apple’s sales came from iPhones and iPods, which have continued to see growth in sales over previous quarters despite the economic decline.
Microsoft has stated that the job cuts will take place over the next 18 months, and will target marketing, sales, finance, legal, human resources, development and IT, so basically everything then. The lay-offs will save Microsoft around $1.5 billion in operating expenses.
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