Microsoft lays off 5,000 as slump hits PC industry
For the first time in its 34-year history, Microsoft announced that it would cut its workforce by 5,000 after announcing disappointing half year results on 22 January. John Stokdyk reports.
The company's chief financial officer Chris Liddell explained that the 8% drop in operating revenues ($5.94bn) and 11% lower profits ($4.17bn) on the previous quarter came about because “economic activity and IT spend slowed beyond our expectations".
Weakness in the PC market and a shift to lower cost netbooks saw an 8% drop in revenues from the company's core client division.