Microsoft today announced they’d be laying off 5,000. Cuts will come across all divisions, including: “R&D, marketing, sales, finance, legal, HR, and IT” which Microsoft hopes will save it $1.5 Billion/year. In light of the further deterioration of global economic conditions, Microsoft announced additional steps to manage costs, including the reduction of headcount-related expenses, vendors and contingent staff, facilities, capital expenditures and marketing. As part of this plan, Microsoft will eliminate up to 5,000 jobs in R&D, marketing, sales, finance, legal, HR, and IT over the next 18 months, including 1,400 jobs today. These initiatives will reduce the company’s annual operating expense run rate by approximately $1.5 billion and reduce fiscal year 2009 capital expenditures by $700 million.
For some more interesting stuff check what makes Microsoft tick here: Statements in this release that are “forward-looking statements” are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors such as: — challenges to Microsoft’s business model; — intense competition in all of Microsoft’s markets; — Microsoft’s continued ability to protect its intellectual property rights; — claims that Microsoft has infringed the intellectual property rights of others; — the possibility of unauthorized disclosure of significant portions of Microsoft’s source code; — actual or perceived security vulnerabilities in Microsoft products that could reduce revenue or lead to liability; — government litigation and regulation affecting how Microsoft designs and markets its products; — Microsoft’s ability to attract and retain talented employees; — delays in product development and related product release schedules; — significant business investments that may not gain customer acceptance and produce offsetting increases in revenue; — changes in general economic conditions or the availability of credit that affect the value of our investment portfolio or demand for Microsoft’s products and services; — adverse results in legal disputes; — unanticipated tax liabilities; — quality or supply problems in Microsoft’s consumer hardware or other vertically integrated hardware and software products; — impairment of goodwill or amortizable intangible assets causing a charge to earnings; — exposure to increased economic and regulatory uncertainties from operating a global business; — geopolitical conditions, natural disaster, cyberattack or other catastrophic events disrupting Microsoft’s business; — acquisitions and joint ventures that adversely affect the business; — improper disclosure of personal data could result in liability and harm to Microsoft’s reputation; — outages and disruptions of online services if Microsoft fails to maintain an adequate operations infrastructure; — sales channel disruption, such as the bankruptcy of a major distributor; and — Microsoft’s ability to implement operating cost structures that align with revenue growth.
