Microsoft to Ax 5,000 Jobs, Reports 11 Percent Loss in 2Q Profit

Fox News: "The layoffs appear to be a first for Microsoft, which was founded in 1975, aside from relatively limited staff cuts the software company made after acquiring companies.

The company announced the cuts as it reported an 11 percent drop in second-quarter profit, which fell short of Wall Street's expectations. Microsoft shares plunged 7 percent in pre-market trading."

PoSTedUP5566d ago

MS expect to lose 4.7B.

sony 3.4B loss.

economy is takeing its course...

Simon_Brezhnev5566d ago

yep yep and microsoft i think they hurt more because they have a lot less employees then sony and loss a lot more money

rhood0225566d ago

Sony's losses are only US$2.2 billion. The $3.38 billion is AUD$. Since Fox is reporting in US$ then that's the correct comparison.

IdleLeeSiuLung5565d ago

The summary above is incorrect, their profits slipped about 700 million dollars, but they are still in the positive. Profit went from expected 4.71 to actual 4.17 billion.

This is a smart company that cuts jobs in advance instead of holding onto dead weight. However, I'm suprised how drastic the cuts are though for a company with so much cash and still in the positive.

The Lazy One5565d ago

not the summary.

They don't expect to lose anything. A retard just added his own misinterpretation to the end of the summary.

DaKid5565d ago

Nice quote from the article "Microsoft expects to lose about $4.17 billion, or 47 cents per share, losing all the sharing they got from earnings of 50 cents per share. Bad news from Microsoft seems to worsen as the years advance"

When the article really says "The Redmond-based company says profit slipped to $4.17 billion, or 47 cents per share, from year-ago earnings of $4.71 billion, or 50 cents per share."

Lame news reporting there

poindat5565d ago

Dead weight? Like the Zune?


+ Show (3) more repliesLast reply 5565d ago
Naked-Snake5566d ago

Hmmmmm, I thought Sony was the one in trouble?

Why dis5565d ago

They are...

They're not making a profit nor does the monthly tracking companies report good news for PS3.

DJ5565d ago

You have to remember that they're still making boatloads of cash off of PS2 and PSP. PS3's doing quite well with 20 million units on the market and 17 million PSN members.

But yes, the division needs PS3 to pull ahead much faster, and the only way to do that is with more games and a lower price point. 2009 is supposed to be the year that PS3 becomes profitable for Sony, so hopefully they'll pull it off.

Vecta5565d ago

Well before the economic crisis Sony was only making about 1.6 billion a year in profits, whereas Microsoft was making around 11 billion a year in profits. So yeah I would say Sony is the one in more trouble.

Captain Tuttle5566d ago (Edited 5566d ago )

The description is wrong. MS's profit slipped TO $4.17 billion FROM $4.71 billion. They still made a profit, just less than last year and less than the were expecting.

Still not good news.

Mr_Zkaar5566d ago (Edited 5566d ago )

All corporations are feeling the pinch, except when it's Sony then the Xbots come out of the woodwork.

Why dis5565d ago (Edited 5565d ago )

Sony made a profit?

Love the massive Xbox divion losses room on the front page when the truth was just a studio being axed in Microsoft games studios that made games for PC. PC studio some how became news about the xbox side of MGS. lol

GiantEnemyCrab5565d ago

Unlike the Sony zealots who have no woodwork they are always out in full force.

I don't want to hear another say that it's all Sony doom and gloom and MS gets a pass.

Blademask5565d ago

Come on man, I can probably find 40-50 "DOOMED" stories from last month alone, MS has maybe 4 stories about the same issue which was rumored earlier on. Its definitely not the same as the bs sony doomed articles based on 1 npd man.

a handful of news sources, not random blogs saying "MS HAS CUT STAFF" is the same as jpbody's blog saying "Bluray Killed the PS3? Just look at NPD!" and getting approved over and over on this site?

MS fanatics can't take it, but they sure as hell can dish it out.