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Report: Microsoft Completes Layoffs With 800 More Cuts
by Chris Remo
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November 4, 2009
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Microsoft has completed the nine-month workforce reduction it started this January, with a stated final round of 800 job cuts this week taking the company's 2009 layoff total above its goal of 5,000.
The company also finished ahead of time: in January, when it said it would be cutting roughly 5,000 jobs due to declining income and the broader unfavorable economic climate, Microsoft said the cuts would be made by June 2010. According to a tally by paidContent, today's 800 losses come after the company had already fired 4,600 employees as of the latest round.
There has been no indication as to how heavily this round of staff cuts have affected Microsoft's Entertainment and Devices Division, which deals with Xbox 360 and PC gaming. The group is currently performing favorably relative to the rest of the tech giant, although cuts earlier in 2009 shut down Flight Simulator division ACES Studio.
In its latest fiscal quarter, Microsoft posted an 18 percent year-over-year decline in profits on a 14 percent revenue drop. Meanwhile, even with flat sales, EDD produced an impressive -- if overall relatively small -- 96 percent profit boost.
Microsoft released an official statement confirming the 800 cuts following a report on Seattle-area blog TechFlash that broke the news after work hours yesterday, corroborating weeks of rumors.
The company has "completed our reduction plan sooner than we had anticipated 11 months ago," the statement reads in part, going on to imply that further layoffs might be instituted. "At the same time, we continue to hire in priority areas, but also understand that continuing to manage our businesses closely, as we always do, can mean additional headcount adjustments."
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