Microsoft announced today it’s cutting 5,000 jobs in the next 18 months. Immediately, 1,400 positions will be axed. The rest of the five grand will happen by June 2010. The 5.5 percent reduction in corporate workforce is expected to save $1.5 billion in operating expenses and $700 million in capitol expenditures in 2009.
The Redmond giant is struggling this year, posting lower earnings than expected. In the past 12 months, its stock has fallen 40 percent. Microsoft blames its losses on the slump in desktop computer sales.
Netbook sales represent the largest growing industry segment, and it’s the one segment Microsoft hasn’t been able to grasp in part due to Vista’s dislike of netbook hardware. Windows 7 beta isn’t as finicky, so if Microsoft wants to win in this market segment, they’ll have to fast track the release of Windows 7 by our estimation.
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