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Print Edition StoriesThursday, January 22, 2009
New England spared in Microsoft’s job cuts
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Microsoft Corp. plans to cut up to 5,000 jobs -- including 1,400 on Thursday -- in research and development, marketing, sales, legal, finance, human resources and information technology, the company announced today in its release of its second quarter results.
According to Microsoft spokesperson Catherine Collins, there will be no job losses in New England, and the bulk of the jobs will be primarily taken out of the company’s Redmond, Wash., headquarters.
“The majority of today’s job eliminations are in Redmond, consistent with the high concentration of employees based at our headquarters in the Seattle area,” Collins said, in a statement. “Microsoft in New England is not directly impacted by the immediate job eliminations announced by the company today.”
The reduction in headcount will lower Microsoft’s annual operating expenses by about $1.5 billion, the company said, and lower capital expenditures for fiscal 2009 by $700 million.
The cuts were driven in part by Microsoft quarterly numbers, which showed that, while its revenue for the most recent quarter was up 2 percent to $16.63 billion over the same period last year, operating income, net income and diluted earnings per share for the quarter were all down. Operating income was $5.94 billion, net income was $4.17 billion and diluted earnings per share was 47 cents, declines of 8 percent, 11 percent and 6 percent, respectively, compared with the prior year.
The news comes on the same day Microsoft is in Boston with a travelling developer’s conference, touting its new Azure cloud computing operating system.
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