updated 03:05 pm EST, Wed November 4, 2009
Microsoft cuts go beyond planned 5K
Microsoft today confirmed late rumors and said it has cut 800 additional jobs. The positions are spread across many of the company's divisions and are above and beyond the 5,000 cuts planned at the start of the year. No direct explanation is given other than that the company says it still has to "manage [its] businesses closely" and watch for where it can trim costs.
The latest round of layoffs also officially concludes a Microsoft job reduction plan in 11 months, ahead of schedule.
All of the job cuts this year have been rare for Microsoft, which has traditionally avoided cutting jobs whenever possible but has faced little choice. A combination of the poor world economy and active resistance to Windows Vista has triggered three consecutive quarters of revenue declines that haven't been fully offset by online business or the Xbox 360. Windows 7 is also less than two weeks old and has yet to have a definitive impact on Microsoft's bottom line.
Most of Microsoft's remaining challenges involve hesitation to adopt Windows 7 at the workplace as well as its lagging Windows Mobile business.