Microsoft cuts 800 jobs, completes reduction plan early

WASHINGTON (AFP) - – US computer software giant Microsoft said Wednesday it is cutting 800 more jobs in addition to 5,000 layoffs announced previously.

"Earlier this year, we announced that in order to reduce costs, increase efficiency and prioritize our focus areas, we would eliminate approximately 5,000 positions by June 2010," Microsoft said in a statement.

"Today, we are eliminating around 800 positions spread across multiple businesses and locations and have completed our reduction plan sooner than we had anticipated 11 months ago," the statement said.

"What this is is the end of the effort that was announced by (Microsoft chief executive Steve) Ballmer and Microsoft in January," Microsoft spokesman Lou Gellos said.

"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," the Microsoft statement said.

The total layoffs since January are the largest ever at the Redmond, Washington-based company, which had 91,005 employees at the end of September.

Microsoft last month reported that its net profit fell 18 percent in the first quarter of its fiscal year to 3.57 billion dollars, or 40 cents per share, from 4.37 billion dollars, or 48 cents per share, a year ago.

Revenue declined 14 percent in the quarter which ended on September 30 to 12.92 billion dollars.

It was the third quarter in a row of sliding revenue for the company founded by Bill Gates, but it surpassed analysts' forecasts of 12.37 billion dollars.

Microsoft has been battered by weak worldwide demand for personal computers and is hoping to get a boost from the release last month of its much-heralded next-generation operating system Windows 7.