Microsoft plans 5,000 job cuts as its profits fall
Computerworld - Microsoft Corp. last week announced that it will eliminate 5,000 jobs because IT spending in the most recent quarter didn't meet projections.
At the same time, the company reported that its profits for its second fiscal quarter, which ended Dec. 31, fell 11%, to $4.17 billion, from the same quarter a year earlier. But its revenue rose 2% to $16.6 billion.
About 1,400 workers were laid off immediately, with the remainder to be dismissed over the next 18 months. Posts will be eliminated in IT, R&D, marketing and other departments, Microsoft said.
CEO Steve Ballmer said the layoffs came because Microsoft's "cost base has grown significantly." He noted that new jobs created over the next 18 months will keep the overall head-count reduction to 2,000 to 3,000.
This version of the story originally appeared in Computerworld's print edition.
Got something to add? Let us know in the article comments.
Read more about IT Careers in Computerworld's IT Careers Topic Center.
- The New IT Explore enhanced productivity for IT staff, and seamless integration across IT operation management systems. Download now.
- Capabilities You Need in an IP Address Management Solution A mismanaged IP space can cripple an otherwise healthy network. Take a moment to understand what you need in an enterprise-ready IPAM solution.
- IPv6 Fundamentals IPv6 is needed to sustain the growth of the Internet. The transition from IPv4 will require planning and likely some degree of support...
- Optimize IT Performance & Availability: Four Steps to Establish Effective IT Management Baselines More than ever before, your company's ability to grow hinges on IT performance and availability. Download this how-to report on establishing IT baselines,...
- Bringing software licenses into compliance A hospital group received a software license audit, so they called in CDW to help define and manage their software licensing status.
- Maximizing Availability for the Modern Data Center Check out this information-packed resource center for help in maximizing the availability of your data center - from overcoming challenges to choosing the... All IT Careers White Papers | Webcasts
Our 28th annual survey results show which IT skills are in high demand and which are cooling off. Also, see how your salary stacks up to peers' with our Smart Salary Tool.