Microsoft Results Disappoint, 5,000 Job Cuts Coming
Microsoft reported quarterly results on the 22nd January that missed Wall Street expectations and the software giant announced that it would eliminate 5,000 jobs. The results show that even Microsoft is not immune to the recession and the sluggish global economy. Microsoft eliminated 1,400 jobs on the day it announced its results and the rest of the cuts will follow during the next 18 months.
NEW YORK (Reuters) – Microsoft posted quarterly results that missed Wall Street expectations, announced it would cut up to 5,000 jobs and said it could no longer offer profit forecasts for the rest of the fiscal year.
Shares of Microsoft fell 8.5 percent in pre-market trading.
Microsoft posted a profit of £3.06 billion, or 0.35 pence per share, in its fiscal second quarter ended 31st December, versus a profit of £3.46 billion, or 0.37 pence, a year earlier. Analysts were looking for earnings per share of 0.36 pence, according to Reuters Estimates.
Revenue rose 2 percent to £12.20 billion, missing the average analyst forecast of £12.55 billion.
To cut costs, Microsoft said 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 months, including 1,400 jobs on Thursday.
