Close
Are you sure? Are you sure you want to report this comment? I understand, report it. Cancel

Microsoft confirms 5000 job losses

Thu 22 Jan 2009 4:19pm GMT / 11:19am EST / 8:19am PST
Business

Xbox division revenue grows 3 per cent, but company prepares for "economic uncertainty"

Microsoft has confirmed it is to cut 5000 jobs, with 1400 to go today.

The remaining positions will be eliminated over the next 18 months, and include positions in R&D, marketing, sales, finance, legal, HR and IT.

The cuts come as the company revealed that revenues for the second quarter were USD 16.63 billion, a 2 per cent increase over the same period the previous year.

Operating income was USD 5.94 billion, down 8 per cent, while net income was down 11 per cent to USD 4.17 billion.

Revenues for the firms Entertainment and Devices division – which includes the Xbox business – rose 3 per cent, to USD 3.18 billion.

"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," offered Steve Ballmer, CEO 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."

Chris Liddell, chief financial officer at Microsoft added: "We are planning for economic uncertainty to continue through the remainder of the fiscal year, almost certainly leading to lower revenue and earnings for the second half relative to the previous year.

"In this environment, we will focus on outperforming our competitors and addressing our cost structure."

Login or register to post

Take part in the GamesIndustry community

Register now