New York, Dec 29: Reports suggest that Microsoft Inc, world's top software firm has been asked by experts to layoff 10 pc of its workforce. (about 9,100 employees). This is to tell to the market that profits are more important than revenue growth during critical conditions.
Brad Reback, an analyst of Oppenheimer & Co (brokerage firm)
said in a report on Microsoft that such measures of workeforce cut
would be a healthy move for the company. He
said, "the markets would receive the move well, which signals that profitability is more important than revenue growth during this very difficult time."
He further said that 10 pc reduction in the company's payroll would result in an approximately 10 pc gain in its earnings per share. Microsoft has nearly 19,000 employees on its payrolls at the end of July-September quarter. Earlier the internet giant had freezed hiring in some of its sections like entertainment and sevices businesses that make products like X-Box and Zune. There are some unconfirmed reports that the company may announce some major layoffs in the begining of 2009.
It is scheduled to release its second-quarter results for the fiscal year 2008-09 on Jan 22. In Dec alone more than one lakh people lost jobs in United States, which is battling deep financial crisis. Meanwhile over 20 lakh layoffs have taken place in 2008 so far allover the world.
OneIndia News (With inputs from Agencies)