Microsoft executive says layoffs offset by more R&D

Up to 3000 employees could be needed for Microsoft's research efforts this year, in part offsetting layoffs, a top company executive said Tuesday.

Up to 3000 employees could be needed for Microsoft's research efforts this year, in part offsetting layoffs announced in January, a top company executive said Tuesday.

Microsoft's Chief Operating Officer Kevin Turner said during a keynote speech at the Cebit trade show that the remainder of this year will continue to be challenging as the global economy faces a severe downturn.

Microsoft said in January it would cut 5000 positions as it saw its net income fall 11 per cent for the quarter ending Dec. 31. The company said the job cuts would come in marketing, sales, finance, legal and human resources among other areas over the next 18 months.

Turner said Microsoft plans to spend $US9 billion on research this year new , $1 billion more than 2008. New positions will be created as the company analyses its business, he said.

"This alignment and realignment will also allow us to reassign some employees to new priorities and that we may create 2000 to 3000 new jobs over the same time frame as we continue to invest in new growth opportunities," Turner said.

Turner said the world economy saw incredible growth for many years but that it was fueled by an increase in consumer debt. He said the economy will have to "reset" itself, centering more on innovation and growth rather than growing private debt.

Part of Microsoft's research efforts are centered in Europe, including the company's U.K. research facility and a search technology center in Munich, Germany. Microsoft said last October it would also do search research in London and near Paris. Microsoft has sought so far unsuccessfully to unseat Google as the most-used search engine.

Turner said Microsoft will focus on so-called cloud computing and software as a service, where remote data centers do the computing and deliver the results to client computers.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Microsoft

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Jeremy Kirk

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?