Linked by Thom Holwerda on Thu 22nd Jan 2009 15:37 UTC
Microsoft After much, much, much speculation, Microsoft let the cat out of the bag today: due to weak results, Microsoft is going to cut 5000 jobs. Those 5000 jobs will disappear over the course of 18 months, with 1400 jobs being cut immediately. Quarterly results, as well as the cost-cutting measures, were made known in a press release today.
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risbac
Member since:
2007-03-29

Ok, maybe they need to cut jobs. But how many companies in the world can pretend to have the same margins as Microsoft? I think this economic stagnation is just a good opportunity for companies to cut costs and improve their already huge margins. A 16.63 billion USD profit for a quarter? And they are cutting more than 5% of their employees? I'm probably naive, but I don't find that fair for those who are going to lose their job.

Reply Score: 10

LobalSurgery Member since:
2006-09-07

It's $16.63 billion total revenue for the latest quarter. The net profit is $4.17 billion, which gives a still-impressive net profit margin of 25% (down from 29% for the previous quarter).

To give an idea of how Microsoft's net profit margin of 29% compares elsewhere in the computer industry last quarter (figures are from Google):

Dell: 4.8%
Apple: 14.4%
HP: 6.3%
IBM: 11.2%

Even though everyone is feeling the pinch of the global economy, the sky is hardly falling for Microsoft, and a layoff at this point just doesn't seem justified.

Reply Parent Score: 10

HappyGod Member since:
2005-10-19

Totally agree,

It's pretty appalling that companies are allowed to do this.

It's like the Commonwealth Bank in Aus not so long ago, made a record $2.6bn and sacked 1500 people. Governments need to regulate this kind of thing.

It's fair enough if companies are strapped and have to let people go, but this kind of thing is ridiculous.

Reply Parent Score: 3