Over the next 18 months Microsoft is expected to cut anywhere between 2000 and 5000 positions in Research and Development, Legal, Human Resources, and Information Technology.  A total of 1,400 positions are due to be cut immediately.

Microsoft posted a lower than expected profit of $US4.17 billion ($NZ8 billion) in its second quarter ended December 31.

Revenue at its Windows client division fell 8% due to delayed corporate upgrades of PCs and cannibalisation of consumer notebook sales by netbooks installed with Windows XP.

Microsoft Corp’s stock fell nearly 12 percent at one point to its lowest level since 1998.

As at 30 September 2008, Microsoft employed 94,286 staff worldwide, with 56,654 based in the United States.  If 5000 jobs were to be cut this would equate to 5.3% of the total Microsoft workforce.

Microsoft employs around 150 staff in New Zealand, who are not expected to be part of the job cuts.

Source: Microsoft, National Business Review, Computerworld

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