Microsoft has announced it will cut up to 5,000 jobs – 5% of its total workforce – in an effort to save $US1.5 billion ($AUD2.3 billion). The cuts, to take effect over the next 18 months, are in response to a violent slowdown in spending , according to a report in The Age.
The move comes after the company posted worse-than-expected second-quarter results, attributed to businesses curbing software purchases, and customers opting for cheaper versions of the Windows operating system.
The company s share price fell 10% on the Nasdaq. The cuts are not expected to include Microsoft Australia employees.
In related news, Intel Corp announced it will close five plants, and Seagate Technology said it plans to cut 2950 jobs.
It was a better story for Google however, which reported a fourth-quarter profit that beat analysts estimates. Google is reaping the rewards of recession-hit businesses advertising on the search engine.
Stocks for your watchlist (NASDAQ):
MSFT.O Microsoft Corp
INTC.O Intel Corp
STX.O Seagate Technology
GOOG.O Google Inc
Further information:
http://www.australianit.news.com.au/story/0,24897,24951523-15306,00.html
Tags: economy, google, intel, microsoft, Nasdaq, seagate, share market
