Thursday, January 22, 2009
Microsoft Earnings and Revenues Take a Big Hit; 5,000 to Be Laid Off (Plus the Full Press Release)
Microsoft said its financial performance took a major hit, with revenue up only two percent and net income down 11 percent, whiffing badly on Wall Street’s expectations. In addition, the software giant said that it would cut 5,000 jobs and other costs across many divisions over the next 18 months, starting with 1,400 today, pegging operating cost savings at $1.5 billion annually. Perhaps most ominously, Microsoft said it would not give profit and revenue guidance for the rest of the year because of the economy’s turmoil. Apparently, even the smartest of techies have little insight to this very foggy financial situation.
