Microsoft has revealed its first quarterly drop in revenue in 23 years, reporting a 6% fall during the first quarter of this year.
The world’s largest software company has been hit by a fall in technology spending among both consumers and businesses, together with the effects of the economic downturn.
Its profit for the quarter fell 32% to $2.98bn (£2bn), with revenue slipping to $13.65bn (£9.3bn). It is the first quarterly drop it has experienced since it went public in 1986.
Chief financial officer, Chris Liddell, says it expects the “weakness to continue through at least the next quarter”.
At the beginning of the year Microsoft announced plans to cut up to 5,000 jobs over the next 18 months in order to cut costs.
In March, Microsoft appointed Mike Fischer as chief marketing officer for its new Consumer and Online UK division.
The division was launched this year following the appointment of former Project Kangaroo chief executive Ashley Highfield as managing director and vice-president of Consumer and Online UK.