Microsoft To Lay Off 5,000 Workers
By Anna Johnson on January 23rd, 2009Microsoft has announced plans to lay off 5,000 employees. This is the first time the Redmond, Washington based software giant has undertaken sweeping layoffs of this kind.
Microsoft said it would lay off the 5,000 staff – out of a total of 94,000 – over the next 18 months, including 1,400 people on Thursday. The cuts are expected to hit several parts of the business, although some staff may be rehired in other areas.
Microsoft CEO, Steven Ballmer indicated the decision was motivated by the recent drop in sales of personal computers and Microsoft’s Windows operating system, and an expectation that it might take up to two years for Microsoft’s business to rebound.
Microsoft announced the cuts as it released its second-quarter results. In particular, Microsoft’s net income, $4.17 billion, was down 11 percent from a year ago.
