Microsoft announces third round of layoffs

Posted by Erina Lin on November 4, 2009 at 11:12 AM

Microsoft announced its third round of cut this year, which will affect another 800 jobs, due to depressing sales and profits, Media Post reported.

"Some portion of the new cuts will serve as the final phase of the company's original plan, announced in January of this year, to cut up to 5,000 jobs over 18 months. However, the new layoffs are expected to take the company beyond the original plan, as well," according to the tech news site TechFlash. paidContent also noted that "the number of jobs cut so far seems to have now exceeded the 5,000 figure, since Microsoft had said in its most recent quarterly filing that it had already eliminated 4,600 positions as part of those reductions."

One week ago, the company reported another sharp downturn in revenue and profits, although the results were already better than analysts' expectation.

Microsoft eliminated 1,400 jobs in January, followed by additional cuts in May. However, at that time the company warned that more layoffs were still to come.

Microsoft confirmed that its "reduction plan" has already been completed "sooner than expected", according to a company statement. However, "that doesn't necessarily mean that the company can't begin a new round of layoffs," according to Matt Rosoff, an analyst with Directions on Microsoft.

With the launch of its new operating system, Windows 7, Rosoff said that along with its ability to reign in other expenditures, and the health of the broader economy will all be the determining factor.