This marks the first large round of layoffs in the company's history. It immediately let go about 1,400 people after the cuts were announced in January, followed by more than 3,000 in May. In total, around 6.3% of its approximately 91,000 head count will have been eliminated after the program is completed, up from the 5.5% previously expected. Microsoft also reduced executive pay, cut travel expenses and dropped several products including Money, Windows Live OneCare and its Flight Simulator franchise.
Last month the company managed to beat analyst expectations for its first fiscal quarter earnings and revenue, which it attributed to its tight cost controls and better-than-expected sales, although it still saw a drop in revenue and steep losses from its online business division. All eyes will be on Microsoft early next year when it reports its fiscal second quarter results, as these will include Windows 7 sales numbers for the first time.