Microsoft to cut 5,000 jobs

Posted by Ecosoft | 9:34 PM | | 0 comments »

IT giant Microsoft announced Thursday it will cut up to 5,000 jobs in the next year and a half. It would be the 5.5% of its global workforce.

Microsoft will slash 1,400 positions immediately, with the rest of the cuts coming by June 2010.

The company said it will save about $1.5 billion in operating expenses and $700 million in 2009 capital expenditure.

Shares of the company fell 7% in early trading on the news.

Microsoft also announced second-quarter net income of $4.17 billion, down 11% from a year earlier

The software maker said sales of its Vista operating system slumped 8% on weak PC sales as well as a continued shift toward lower-priced laptop computers.

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