After an 11 percent drop in second-quater profits and a 12% drop in share prices, Microsoft has announced that it will slash 5000 jobs as a cost cutting measure. They have also declined to issue forecasts for profit for the rest of the year.
“We’re certainly in the midst of a once-in-a-lifetime set of economic conditions,” Chief Executive Steve Ballmer said during a conference call. With less access to credit, businesses and consumers are spending less and stretching the life span of their existing computers.
This article on theage.com.au goes into more detail about the move, which is the first of it’s magnitude in the company’s 34 year history.