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Microsoft Layoffs – 1400 today, 5000 over the next 18 months

Microsoft missed Q2 revenue and earnings forcasts. Revenue was $16.63 billion versus $17.08 billion expected. EPS was $0.47 a share, below $0.49 expected.  So what to do?

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
    — claims that Microsoft has infringed the intellectual property rights of
    — 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.

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