Microsoft Reports Lower Net Income and Massive Job Cuts

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MicrosoftMicrosoft announced its financial results for its fiscal second quarter ended December 31, 2008. Microsoft also announced plans to substantially reduce its staff to "manage costs." Microsoft plans to eliminate up to 5,000 jobs over the next 18 months, and eliminated 1,400 jobs today.
For the quarter, Microsoft reported net income of $4.174 billion, compared to net income of $4.707 billion in the same quarter the previous year. Overall, Microsoft blamed PC market weakness for lower revenues

Microsoft's Entertainment and Devices Division (EDD) that includes the Xbox 360 and PC gaming business, reported revenues less than half of those last year. For the quarter, EDD reported revenues of $3.183 billion compared to $3.076 billion in the prior year. EDD reported operating income of $151 million compared to operating income of $375 million in the same quarter the previous year. Microsoft reported that the slight increase in EDD revenues was due to increased Xbox 360 sales during the holiday season. Despite that, the division's operating income was considerably lower than in the same period the previous year.

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This page contains a single entry by Editor published on January 22, 2009 8:56 AM.

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