Microsoft has announced plans to cut 5,000 jobs over the next 18 months. 1,400 of the layoffs will occur immediately. They are the first major layoffs for the software giant.
The layoffs, 1,400 of which come immediately, appear to be a first for Microsoft, which was founded in 1975, aside from relatively limited staff cuts the software company made after acquiring companies.
The company announced the cuts as it reported an 11 percent drop in second-quarter profit, which fell short of Wall Street's expectations. The company also said it is unable to offer profit and revenue guidance for the rest of the year, because of the market volatility.
Microsoft blamed deteriorating economic conditions worldwide and lower revenues from PC software for the need to cut jobs. The Microsoft layoffs rumors have been discussed on blogs and technology websites for the past few weeks.
