Microsoft to Fire 15 000

CNET News reports that US-software giant Microsoft is about to lay-off about 17% of its workforce worldwide, which amounts to 15 000 employees, most of these working on MSN. There is no word on how this will affect Windows Mobile workers.

The announcement would be heard ahead of the company's second quarter earnings report, which will be conduced January 22nd. The mass-lay-off would be the company's first in its 32-year history. Microsoft has declined to comment on these rumours.

According to the Fudzilla blog, a 10% lay-off would save Microsoft US$1.2 billion per year, but the truth is that the cut will shorten development too, which affects revenue in turn.

Microsoft's first quarter earning report showed a 9% revenue increase over the same period of the prior year, while the 2008 Annual Report showed a 18.2% revenue increase over 2007. Microsoft CFO Chris Liddell said on the October earnings reports, that "Microsoft would adjust downward its guidance for the second fiscal quarter of 2009", as "we are assuming a mild recession and a relatively modest growth rate for IT based products."

[via ITNewsAfrica, NetworkWorld]