NEW YORK: IT giant Microsoft announced Thursday it will cut up to 5,000 jobs in the next year and a half. It would be the 5.5% of its global workforce.
Microsoft will slash 1,400 positions immediately, with the rest of the cuts coming by June 2010.
The company said it will save about $1.5 billion in operating expenses and $700 million in 2009 capital expenditure.
Shares of the company fell 7% in early trading on the news.
Microsoft also announced second-quarter net income of $4.17 billion, down 11% from a year earlier
The software maker said sales of its Vista operating system slumped 8% on weak PC sales as well as a continued shift toward lower-priced laptop computers.
