Microsoft is to shed 5,000 jobs following worse than expected financial results for its second quarter. Some 1,400 jobs are going immediately.
Microsoft said it would eliminate up to 5,000 jobs in R&D, marketing, sales, finance, legal, HR, and IT over the next 18 months.
58 staff from Microsoft UK, representing 2% of the UK workforce is going, mainly in Microsoft services and support groups, a spokes woman said.
Microsoft will also will cut "vendors and contingent staff, facilities, capital expenditures and marketing".
"While we are not immune to the effects of the economy, I am confident in the strength of our product portfolio and soundness of our approach," said Steve Ballmer, chief executive officer at Microsoft. "We will continue to manage expenses and invest in long-term opportunities to deliver value to customers and shareholders, and we will emerge an even stronger industry leader than we are today."
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These initiatives will reduce the company's annual operating expense run rate by approximately $1.5bn and reduce fiscal year 2009 capital expenditures by $700m.
Net income was down 11% to $4.17bn, compared with the prior year.