Microsoft to axe up to 5,000 jobs

 

Gallery

Posted on 22 Jan 2009 at 15:28

Microsoft has posted quarterly results that missed Wall Street expectations and announced it will cut up to 5,000 jobs.

In an echo of Intel's financial announcement last week, the software giant also said it could no longer offer profit forecasts for the rest of the fiscal year.

Shares of Microsoft fell 8.5% in pre-market trading.

Microsoft posted a profit of $4.17 billion, or 47 cents per share, in its fiscal second quarter ended 31 December, versus a profit of $4.71 billion, or 50 cents, a year earlier. Analysts were looking for earnings per share of 49 cents.

Revenue rose 2% to $16.63 billion, missing the average analyst forecast of $17.1 billion.

To cut costs, Microsoft says it will eliminate up to 5,000 jobs in research and development, marketing, sales, finance, legal, human resources and information technology over the next 18 months, including 1,400 jobs today.

Author: Reuters