Microsoft resorts to first layoffs, cutting 5,000

SEATTLE (AP) -- Microsoft Corp. will make the first mass layoffs in its 34-year history, cutting 5,000 jobs as demand for personal computers falls and even one of the world's richest companies gets burned by the recession.The company announced the cuts Thursday as it reported an 11 percent drop in second-quarter profit, which fell short of Wall Street's expectations. Microsoft shares plunged more than 11 percent."We're certainly in the midst of a once-in-a-lifetime set of economic conditions," Chief Executive Steve Ballmer said during a conference call. With less access to credit, businesses and consumers are spending less and stretching the life span of their existing computers. (Mintz, 2009)

Well there is a first time for everything,including a massive cut in the workforce.Making matters worse, the one type of PC consumers have warmed to in tight times - the low-cost, low-power "netbook" - actually cut further into Microsoft's earnings. The tiny portable computers run on Windows XP, which is older and less profitable for Microsoft than Windows Vista.

MINTZ , JESSICA (2009,1,22). Microsoft resorts to first layoffs, cutting 5,000. Retrieved January 24, 2009, from wired.com Web site: http://news.wired.com/dynamic/stories/E/EARNS_MICROSOFT?SITE=WIRE&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2009-01-22-09-21-37