Microsoft announced its second quarter results today and as many had predicted there are some job cuts involved. 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. It's expected the job cuts will reduce the company's annual operating expense run rate by approximately $1.5 billion.
Microsoft claims client revenue declined 8% as a result of PC market weakness and consumers purchasing lower priced netbooks. Entertainment and Devices revenue grew 3% driven by a high demand for Xbox 360 consoles over the Christmas perioud, with a record 6 million units sold in the quarter.
In a statement direct from Microsoft, Microsoft CEO Steve Ballmer said "We will continue to manage expenses and invest in long-term opportunities to deliver value to customers and shareholders, and we will emerge an even stronger industry leader than we are today."
In a memo to employees, Ballmer said "the decision to eliminate jobs is a very difficult one. Our people are the foundation of everything we have achieved and we place the highest value on the commitment and hard work that you have dedicated to building this company. But we believe these job eliminations are crucial to our ability to adjust the company's cost structure so that we have the resources to drive future profitable growth." He also mentions Microsoft's cost cutting, "to increase efficiency, we're taking a series of aggressive steps. We'll cut travel expenditures 20 percent and make significant reductions in spending on vendors and contingent staff. We've scaled back Puget Sound campus expansion and reduced marketing budgets. We'll also reduce costs by eliminating merit increases for FY10 that would have taken effect in September of this calendar year."
Microsoft shares are currently trading 6.86% down at the time of writing.
Ok
but wow... 5,000 jobs = about $1.5 billion. damn...
Yes, times are tough, belts are tightening, it's a chance to cut useless fat away everywhere...
(not saying everyone whose losing their job is useless fat....just wishing that were true. sorry for everyone who DID or will lose their job.)
Maybe they have, what do we know... :p
Apple has more profit margin against other competitors :-D
(if you can compare it...Xbox 360 sales was pretty good & made profit too )
*******, take that elsewhere... these are people's lives we're talking about.
It amazes me how everything that is Apple vs. Microsoft is instantly taken in a negative manner. Quite simply I was asking what I stated bellow.
Because you are a typical Apple smug.
Apple = primiraly home users
MS 40% home users and 60% corporate
Steve Jobs missing in action will also affect Apple..
And being a iPhone owner, I'm sure no new firmwares updates will come until July or August because of this..
And we will have to pay for 3.0 so they earn more money
Apple = primiraly home users
MS 40% home users and 60% corporate
Well in the industry I do stuff in Apple is still primarily graphics, audio, and video.
Apple = primiraly home users
MS 40% home users and 60% corporate
Well in the industry I do stuff in Apple is still primarily graphics, audio, and video.
Apple is a hardware company and MS is a software company. You really can't compare the business models.
Yea, but apples stuff is expensive and a lot of college students buy them using grants/student loans
Apple = primiraly home users
MS 40% home users and 60% corporate
False. Apple and Microsoft share a lot of the same markets.
Apple = primiraly home users
MS 40% home users and 60% corporate
False. Apple and Microsoft share a lot of the same markets.
They just share SOME markets...not all...And Apple has good profit margin..and Microsoft major business model is Software...and Apple's is hardware..
Not just that....but its quicker to fire people to get more money.
The headline says 5000, but headcount will decrease around 2000/3000. Since they will creat between 2000 and 3000 new positions. So there is still hope that those people who are losing their jobs will find other jobs internally.
And I support firing the MSN staff....
Microsoft also has to keep giving out it's money to the EU, and other money hungry entities. This i believe is partly due to the recession in the united states, but also because of the fines, and other law suits.
money money money the company can't take the people couple of years while the people take the company
up on there back for many years. very decent decision.
bill & balmer is doing a many risks this days.
windows 7 will be build on this 5000 jobs cut's history.
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