The rumour finally comes true.
Microsoft finally breaks its silence on possible major layoff after announcing its plan to cut 5,000 jobs as the company is looking at its financial forecast pessimistically.
Steve Ballmer, the chief executive, made the announcement to shocked Microsoft investors today, delivering another not-so-good news as the company reported an 11% revenue drop for its fiscal year’s second quarter.
The 5,000 workers represent about 5.5% of Microsoft’s 90,000-over employees worldwide.
The job cut will begin as early as next week with more than one thousand workers set to become its first batch of victims. The layoff exercise is estimated to last for 18 months, with possibly other rounds of job cuts to be announced at later stage. Various positions and levels are affected in the move, including sales, finance, research & development and technology.
The retail and consumer market has been badly affected with the current global economic downturn, and sales of personal computers have dropped dramatically in the recent months. Consumers have been shrinking their wallets in anticipation of the upcoming recession. As most computers are running on Microsoft operating systems, it is only natural to see the company’s revenues going down the same hill.