Microsoft may cut 8,000 jobs as profit drops

By Justin Mann on January 21, 2009, 5:14 PM
Being an international company with their hands in nearly every aspect of modern computing and Internet services, Microsoft has found that they are not immune to a weak economy, and apparently job cuts are in order. This is prompted by missed profit targets and a significantly lower than expected profit for Q4. Sliding sales in business software, video games, desktop PCs and more, all of which Microsoft plays some part in, have affected the company enough to warrant cutting upwards of 8,000 jobs within the next few months. That represents up to 8% of their workforce, which is significant for a company as large as Microsoft.

This isn't entirely what you'd expect from a company that was prepared to plunk down billions of dollars to acquire Yahoo just a few months ago. The cuts may not stop there, either, with rumors that they may be looking at other cost reductions going forward. Microsoft isn't speaking openly about their plans, nor did they mention if a large job cut or smaller job cuts over a long period of time are in the works. The only for sure thing is that Microsoft is definitely hurting, with their stock value being cut nearly in half over the past year.

The company is often considered to have ample cash reserves, but the bottom line is that Microsoft is aware they aren't making money like they want anymore, so we can probably expect changes to come from them soon.




User Comments: 10

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MichaelLS said:
Well, considering the number of downgraded Vista machines we see- no big surprise!I guess people are finally getting tired of being the Alpha Testers for Microsoft.I'll bet Paul and Bill won't be giving up those custom 757 aircraft anytime soon though!They have lost money on every X-Box they ever made. Fact!Who's idea was it to name that little 'brown' box the 'Zune' anyway? Have you ever asked the retailers how many of those things get returned? Sad!Who are the victims here?
fullmetalvegan said:
Windows Vista FTW. Awesome operating system, superior to XP in ease of use.The victims here are Microsoft for the anti-Vista bandwagon that developed which was based on misconception.[b]Originally posted by MichaelLS:[/b]They have lost money on every X-Box they ever made. Fact![/quote]LOL - Yes I'm sure it is, not even going to bothering arguing this stupid statement.[b]Originally posted by MichaelLS:[/b][quote]Who's idea was it to name that little 'brown' box the 'Zune' anyway? Have you ever asked the retailers how many of those things get returned? Sad!?[/quote]Not nearly as many iPods that get returned at my dad's work, that's for sure. Always having to send those back for repairs.Thank you for your input, blatantly obvious Apple fan boy. =D[Edited by fullmetalvegan on 2009-01-23 06:19:18]
MichaelLS said:
Full Metal Vegan?That pretty much says it all doesn't it?So...where does Daddy work young fellow? Wal Mart?Hey! Rentals for the X-Box are at an all time high! Be encouraged!It really shows hope for our culture! People realize it is better to rent a product that you know is going to fail! Smart!!!
Kage Goomba said:
Hear that? That's the sound of Micro$oft stock going down.. oh look.. an another 5000 employee's laid off.Vista is so great and so cool! It's like a "downandup" affect.Stocks go down and Vista is up!Yep.. makes sense.Still running AVG? Got Limewire?Sweet.... good for yah... keep it up... you'll sail right on by... yep.
MichaelLS said:
Quote: "After confirming job cuts and announcing profit dips, it's no surprise that Microsoft feels they are hurting financially. The companyís Entertainment and Devices Division is still making a profit, though, so at least some of their ventures must be doing well. Apparently thatís not the case with the Zune platform, which saw revenue drop $100 million, or 54 percent compared to the same quarter last year due to lackluster sales."Did I hear a flush?There she goes, the Micro$oft Titanic is going under - head first!!!!Look! There goes another chair across the room in Redmond!Boy, can that man sweat!!!HA, HA!!
fullmetalvegan said:
[b]Originally posted by MichaelLS:[/b][quote]Wal Mart?[/quote]Harvey Norman, Australia's biggest electrical chain. I don't live in USA with people like you, thank god.[b]Originally posted by Kage Goomba:[/b][quote]Vista is so great and so cool! It's like a "downandup" affect.Stocks go down and Vista is up!Yep.. makes sense.Still running AVG? Got Limewire?Sweet.... good for yah... keep it up... you'll sail right on by... yep.[/quote]As previously stated, it was due to a bandwagon of anti-Vista propaganda that hurt its sales. The operating system itself is actually not as bad as is made out. Seeing as you can't write English in proper sentences, I am assuming your ability to read isn't too flash either.For the record, BitDefender actually, or Kaspersky, never run AVG in my life. No, don't use p2p or torrents either. =]I'm getting the impression neither of you are very old, perhaps preteen. Neither of you can construct proper English sentences, so instantly your posts are discredited.I don't understand why you want Microsoft to fail, did they fire you or something? If they were out of the market it falls upon no one else to support it, currently. I honestly can't see that being good for the PC industry, especially with the current financial crisis, not many companies would have the funds to push a new system out the door.
MichaelLS said:
Who is incapable writing proper English young fellow?[/quote]... I don't live in USA with people like you, thank god.... Seeing as you can't write English in proper sentences, I am assuming your ability to read isn't too flash either.... I'm getting the impression neither of you are very old, perhaps preteen. Neither of you can construct proper English sentences, so instantly your posts are discredited.[/quote]That's 'I don't live in' - the - [ or ] - inside the - USA.'The rest is a waste of time to comment on. After you finish grammar school you'll catch on hopefully.Be very blessed young man, as you grow up and mature you will inevitably catch on to where the truth and real reality lives.If you survive with your vegan diet. Slapping God in the face are we?Enjoy Vista beta testing! Most of us have work to do and don't need the extra frustration.Or you can now enjoy Alpha testing Windows 7. [ Free drugs from Micro$oft! - however, once they have you addicted - it will really cost you! ] Blessings!
jawjammer said:
[b]Originally posted by fullmetalvegan:[/b][quote]Not nearly as many iPods that get returned at my dad's work, that's for sure. Always having to send those back for repairs.Thank you for your input, blatantly obvious Apple fan boy. =D[Edited by fullmetalvegan on 2009-01-23 06:19:18][/quote]The reason your father probably has more ipods returned compared to Zunes is that people actually buy ipods,out of the millions of ipods apple does sell some are bound to have hardware issues. In fact apple sells roughly 23 million ipods every quarter, and each year break sales records set the year before.[url]http://www.apple.com/pr/library/2009/01/21result
.html[/url]
MichaelLS said:
[b]Originally posted by jawjammer:[/b][quote][b]Originally posted by fullmetalvegan:[/b][quote]Not nearly as many iPods that get returned at my dad's work, that's for sure. Always having to send those back for repairs.Thank you for your input, blatantly obvious Apple fan boy. =D[Edited by fullmetalvegan on 2009-01-23 06:19:18][/quote]The reason your father probably has more ipods returned compared to Zunes is that people actually buy ipods,out of the millions of ipods apple does sell some are bound to have hardware issues. In fact apple sells roughly 23 million ipods every quarter, and each year break sales records set the year before.[url]http://www.apple.com/pr/library/2009/01/21result
.html[/url][/quote]Exactly - Well Said!Thanks!
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