Microsoft Cuts 800 More Positions


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In its third round of layoffs this year, Microsoft (NSDQ: MSFT) says it is cutting 800 jobs across the company today. The software giant said in January that it would eliminate up to 5,000 jobs, in response to falling sales and profits. These represent the third installment in those previously announced cuts — but the number of jobs cut so far seems to have now exceeded the 5,000 figure, since Microsoft had said in its most recent quarterly filing that it had already eliminated 4,600 positions as part of those reductions.

The company had cut 1,400 jobs back in January and followed up with thousands of additional layoffs in May. At the time, the company had warned that additional layoffs were still to come.

A spokeswoman tells us that Microsoft has now completed what it is referring to as its “reduction plan.” However, she adds that “continuing to manage our businesses closely, as we always do, can mean additional headcount adjustments.”

The layoffs come just over a week after Microsoft once again reported sharp declines in revenue and profits. However, the results were better than analysts had expected and executives had struck a positive tone during the call, saying that they were now well positioned for a “recovering economy.”

Seattle-area tech news site TechFlash first reported last evening that layoffs were coming today.

Here’s the full statement from Microsoft: “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. 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. 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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