Add Microsoft to the ranks of companies forced to cut jobs due to the state of the economy.
According to a story by our own Michael Dinan, the software maker today announced major year-over-year earnings dips and a plan to cut 5,000 jobs.
Microsoft reportedly saw a net income decline of 11 percent, to $4.17 billion, for the quarter ended Dec. 31, as well as a 6 percent drop in earnings per share, to 47 cents.
About 1,400 of the 5,000 job cuts -- across R&D, marketing, sales, finance, legal, HR and IT -- will occur today, with the rest coming over the next 18 months. The layoffs are expected to help reduce operating expenses by about $1.5 billion.
Ever the optimist, Steve Ballmer commented:
While we are not immune to the effects of the economy, I am confident in the strength of our product portfolio and soundness of our approach. We will continue to manage expenses and invest in long-term opportunities to deliver value to customers and shareholders, and we will emerge an even stronger industry leader than we are today.
Investors apparently need some time to digest the news.
Microsoft's shares fell in the wake of the announcement, (down 10.5% at 2pm EST).
I had hoped I was mistaken when I blogged here about industry job losses.
In addition to Microsoft, Ericsson this week announced plans to expand its restructuring, cutting about 5,000 jobs. This is on top of an announcement last year that the firm would eliminate 4,000 positions.
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