Monday, January 26, 2009

Microsoft Experiences Layoff For First Time

The Software Giant Posts Falling Profits

Microsoft Corp. last week announced that it will eliminate 5,000 jobs because IT spending in the most recent quarter didn't meet projections.

At the same time, the company reported that its profits for its second fiscal quarter, which ended Dec. 31, fell 11%, to $4.17 billion, from the same quarter a year earlier. But its revenue rose 2% to $16.6 billion.

About 1,400 workers were laid off immediately, with the remainder to be dismissed over the next 18 months. Posts will be eliminated in IT, R&D, marketing and other departments, Microsoft said.
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Economic Crisis Affects Microsoft In Iowa
Microsoft Delays West Des Moines Data Center

Microsoft’s facility in West Des Moines, Iowa dash any hopes that huge data center projects would create jobs in the midst of the economic crisis. Both states each offered significant tax incentive packages to attract these companies, with expectations of a payoff in high-tech jobs.

Iowa Gov. Chet Culver “is obviously disappointed by the news that Microsoft has decided to delay their plans for a new data center in West Des Moines,” Culver’s office said in a statement Friday. “This is just one more sign that no one is immune from the economic recession gripping our nation. The Governor remains hopeful that conditions will improve and Microsoft will begin construction on their new facility soon.”
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