Microsoft announces 5000 job cuts in China

Beijing Time January 22 Evening News, Microsoft announced tonight in the next 18 months to lay off 5000 people, of which today will lay off 1400 people, layoffs and research and development, marketing and sales departments. Microsoft said this evening that it will cut 5000 people in the next 18 months, accounting for 5.5% of its total workforce of 91,000, involving research and development, marketing, sales, finance, law, personnel and it, and Microsoft says it is cutting out 1400 of them first. It was the biggest layoffs since Microsoft's inception in 34, but 5000 people were far below what the industry had expected – two times before the industry had expected Microsoft to lay off 15,000 people and 6000 to 8000. Microsoft expects the redundancy plan to save $1.5 billion in operating costs and $700 million trillion in capital spending in the 2009 fiscal year. By the news, Microsoft shares fell 7% in trading in Thursday. Microsoft also released its financial report for the second quarter of fiscal year 2009. The report showed Microsoft's second-quarter net revenue of 16.63 billion U.S. dollars, an increase of 2% per cent, net profit of 4.17 billion U.S. dollars, a year-on-year decline of 11%. Analysts had expected Microsoft's second-quarter earnings to be less than expected by the global recession, and analysts expect Microsoft to announce a layoff of 6000 to 8000 this week. (Guhai) Sina Science and technology news January 22 Night, in response to Microsoft's global layoffs of 5000 people, Microsoft China Company related people told Sina Technology on the evening of 22nd, the Microsoft Global layoffs spread to greater China, but only involved in "very few posts", the impact of the Greater China region's business "very little." Microsoft China said that the global job cut 5000 people, but the recruitment plan is still in progress, so Microsoft's global number of jobs dropped only 2000 to 3000 people, the Greater China region only "very few posts" affected, but he declined to disclose the specific number of layoffs. "With only a handful of jobs involved, the layoffs have had minimal impact on the operations in Greater China," the person said. "We remain confident of the long-term growth of Microsoft's Greater China." "Beijing time January 22 night 22 O'Clock, Microsoft released its second-quarter earnings, and also announced in the next 18 months to lay off 5000 people." Microsoft's net revenue in the second quarter was $16.63 billion, up 2% Year-on-year, and net profit of 4.17 billion dollars, down 11%. Microsoft also announced that it would lay off 5000 people in the next 18 months, involving research and development, marketing, sales, finance, legal, personnel and other sectors, of which 1400 people will be laid off today. The layoffs are expected to save 1.5 billion of billions of dollars in operating costs and $700 million trillion in capital expenditures for the company in the 2009 fiscal year. (Lichon)