Microsoft to layoff 9k employees in 2009?
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)