Microsoft's Q2 results in 5,000 layoffs
Software giant Microsoft is slashing 5,000 jobs over 18 months in its first company-wide layoffs, including 1,400 jobs today following disappointing second quarter results.
While revenue of $16.63 billion was up 2% for the quarter, which ended December 31, over the same period in 2007, operating income was down 8%, to $5.94 billion, the company reported. Microsoft is taking “additional steps to manage costs, including the reduction of headcount-related expenses, vendors and contingent staff, facilities, capital expenditures and marketing,” according to a company statement.
Net income decreased 11% to $4.17 billion, and diluted earnings per share decreased 6% to 47 cents.
Client revenue declined 8%, owing to PC market weakness and a shift to lower priced notebooks, the company said.
“While we are not immune to the effects of the economy, I am confident in the strength of our product portfolio and soundness of our approach,” said Steve Ballmer, Microsoft CEO, in a statement. “We will continue to manage expenses and invest in long-term opportunities to deliver value to customers and shareholders, and we will emerge an even stronger industry leader than we are today.”