Software giant Microsoft announced before the opening of trading on Wall Street today that it would lay off 5,000 employees over the next 18 months, 1,400 of them immediately.
Preliminary results for the second fiscal quarter of 2009 showed profits down 11.5% to $4.17 billion, or $0.47 per share, compared with $4.71 billion, or $0.50 per share, in the corresponding quarter last year. Revenue rose slightly to $16.63 billion, compared with $16.4 billion in the corresponding quarter. Analysts had expected revenue of $17.1 billion.
Microsoft Israel said in response, "The efficiency and savings measures by Microsoft will partly be implemented in Israel, while adjusting activity to the updated goals and priorities of the company. In recent years, Microsoft has enjoyed rapid growth in Israel, and we believe that after the required adjustments have been carried out this trend will continue.
"Microsoft continues to be committed to Israel and the company's research and development center in Israel only recently received several projects in new areas that will ensure its continued growth and maintain its status as a strategic research and development center for Microsoft worldwide."
Published by Globes [online], Israel business news - www.globes.co.il - on January 22, 2009
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