Microsoft lays off 800 people

The new cuts go beyond the 5,000 people the company said earlier this year that it would let go

Microsoft is laying off another 800 people, adding to the 5,000 the company has already let go this year.

The Techflash blog first reported the news.

The affected people are based around the world and work in various groups and will be notified on Wednesday, Microsoft said.

The layoffs are part of the plan that Microsoft announced in January to let go of 5,000 people, although Wednesday's action adds to that original number. "In the ensuing 11 months from January until now, we realized we had to move a little beyond the 5,000, so that put us at about 5,800," said Lou Gellos, a spokesman for Microsoft. While Microsoft initially said that it would complete the layoff program by June 2010, this round of layoffs finishes the plan, he said.

As is its usual policy, Microsoft will regularly monitor its size and make adjustments as needed, he said.

This marks the first large layoff in the company's history. It immediately let go about 1,400 people after the cuts were announced in January. It made an additional cut in May, saying that the round nearly completed the total 5,000 cuts.

At the time, Microsoft CEO Steve Ballmer said that more cuts could happen.

The most recent cuts follow an earnings report that included a 14 percent drop in revenue. Market reception to the news was generally positive, since the drop was less than expected.

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Nancy Gohring

IDG News Service
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