Microsoft To Cut Costs by $1 Billion

Microsoft CEO Steve Ballmer sent a memo to his employees today. The memo goes on to tell about the rising expenses that Microsoft is facing. To trouble shoot this Steve Ballmer plans on make cuts in the advertising department, events planning, and customer-relations activities. All together this would save the software giant $1 billion dollars.

Microsoft Latest News about Microsoft is hoping to save US$1 billion from its operations and streamline the management of its 57,000 employees, according to an internal memo from CEO Steve Ballmer. Expenses have risen faster than revenues for the last three years, Ballmer points out in the memo, which is the latest in a series of annual communications to staff. "This is obviously not a trend we can continue," he notes.

Saving a Billion

Microsoft is looking to make cuts in advertising, events planning and customer-relations activities to shave $1 billion off its total operating expenses. These were $22,642 billion for the year ended June 30th 2003, compared to $20,093 billion for the previous year. Microsoft also is reviewing employee benefits, such as healthcare Latest News about healthcare, new-employee vacations and bus passes. Employees have seen perks -- such as free towels -- disappear, and they now have to pay for some drugs that previously were available for free under the company's health plan.

News source: NewsFactor

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