Microsoft slashes corporate marketing budget in France

Microsoft has cut its corporate marketing budget in France but denies suggestions that this is part of any wider reduction in its $250m (164m) pan-European spend.

The company’s pan-European budget is made up of an umbrella corporate campaign and contributions from its subsidiaries.

The decision to cut the budget in France has been taken because of a flat “economic performance”.

However, European marketing director John Leftwich insists that all other budgets have been maintained and that expenditure in its other important markets – Italy, Germany and the UK – will remain in line.

“We re-evaluate all the time,” says Leftwich, “the French operation has been successful but the economy has been flat over the last 12 months and is not particularly strong.”

Microsoft uses two agencies in Europe: Wieden & Kennedy and EURO RSCG.

The size of the pan-European budget was distorted last year by Microsoft’s global $1bn (625m) launch of Windows ’95 software – Microsoft’s largest launch.