
Microsoft declared to slash up 5000 jobs and stop offering profit forecasts. The shares of this world’s top software maker fell 8 percent in early trading. Microsoft posted a profit of $4.17 billion, or 47 cents per share, in its fiscal second quarter ended December 31, versus a profit of $4.71 billion, or 50 cents, a year earlier. Revenue rose 2 per cent to $16.63 billion, missing the average analyst forecast of $17.1 billion.
It is clear that business conditions are worse than people were expecting. Substantial amounts of job cuts are prevalent and it clearly depicts that the times are changing. Microsoft also revealed that 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.
The company will also cut travel spending by 20 per cent, eliminate merit salary increases in September, and significantly reduce spending on vendors and contingent staff. Chief Financial Officer Chris Liddell said in a statement that the economic activities and IT expenditures has slowed beyond their expected measures. The shares of Microsoft fell to $17.84 in early trading on the Nasdaq, from their previous close of $19.38.
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