Microsoft cuts more jobs

 

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By Reuters and Barry Collins

Posted on 5 Nov 2009 at 09:13

Microsoft is cutting a further 800 jobs, on top of the 5,000 jobs already eliminated under a plan to reduce costs that was announced in January.

A spokesman for the world's largest software firm said the latest job cuts are spread across the company's global operations, with around 200 posts being cut in and around its headquarters in Redmond, Washington.

Microsoft originally had planned to cut 5,000 jobs, or about 5% of its 96,000 workforce, before June 2010. The Microsoft spokesman said that plan has been expanded with the new layoffs and is now complete, well ahead of schedule.

The news comes after last month's announcement that Microsoft's profits had fallen for the second consecutive quarter. Profits during Microsoft's first quarter were down 18% to $3.6 billion, with sales also fell 14% to $12.92 billion.

Microsoft is hoping that the promising start for Windows 7 will help reverse its financial fortunes. The operating system is already installed on more than 3.5% of PCs worldwide, according to the latest Net Applications figures, although many of those are still likely to be running the free Release Candidate software.

The Microsoft job cuts come just as the UK IT industry was beginning to find its feet again. A report from the Recruitment and Employment Confederation (REC) and consultant company KPMG claims that jobs in the IT sector are growing for the first time in almost two years.