Microsoft to cut 5,000 jobs

Software giant Microsoft is cutting 5,000 jobs over 18 months, with 1,400 employees to be axed immediately. Marketing roles will be affected by the plans, although it is not yet clear where.

It says the redundancies are necessary following an 11% fall in year-on-year profits to $4.17bn (£3bn) for the three months to December 31, announced today (January 22).

Microsoft added it was “no longer able” to give a profit and revenue outlook for the fiscal year due to volatile market conditions.

The company posted a profit of $4.17bn (£3bn), in its fiscal second quarter ending December 31, down on the $4.71bn (£3.43bn) of a year earlier.

Revenue rose 2% to $16.63bn (£12.12bn), missing the average analyst forecast of $17.1bn (£12.5bn).

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 month. The company was says the cuts will be global and consultations are underway.

Microsoft chief executive Steve Ballmer says: “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.”

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