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Microsoft Starts Second Round of Staff Cuts

imageMicrosoft (NSDQ: MSFT) is laying off thousands of employees Tuesday as part of a plan to cut costs that the company announced earlier this year. The company’s financial results have taken a hit in the recession: Last month, Microsoft reported the first year-over-year drop in revenue in its history, although analysts praised its efforts to cut costs.

In January, Microsoft said it planned to cut up to 5,000 jobs over the next 18 months, including 1,400 right away. In an e-mail to all employees Tuesday, Microsoft CEO Steve Ballmer says that “With this announcement, we are mostly but not all done with the planned 5,000 job eliminations by June 2010.” He adds, “As we move forward, we will continue to closely monitor the impact of the economic downturn on the company and if necessary, take further actions on our cost structure including additional job eliminations.” It’s not clear yet what divisions at the company are being hardest hit by Tuesday’s layoffs. Some of the cuts are taking place outside the United States, including 144 positions that are being eliminated in Great Britain. More about those cuts on our sister site paidContent:UK.

Read Ballmer’s full e-mail to employees after the jump.

From: Steve Ballmer
Sent: Tuesday, May 05, 2009
To: Microsoft – All Employees
Subject: Update: Realigning Resources and Reducing Costs

In January, in response to the global economic downturn, I announced our plan to adjust the company