Microsoft: Ouch!

Reports yesterday were brutal for one of the largest software companies in the world, Microsoft. Microsoft first announced they were giving their quarterly earnings report earlier than scheduled and then the bang came later in the announcement when they reported that 5,000 layoffs were happening: a first for the giant.

The rumors of layoffs at Microsoft have been speculated for over a month now, but the news came amidst dismal earnings for 2008. Windows was not selling due to the lackluster results of PC sales and this economy that companies can’t seem to get around.

According to All Things Digital, “Microsoft, moving up its second-quarter earnings release from this afternoon to right now, said its financial performance took a major hit, with revenue up only two percent, to $16.63 billion, about $900 million below earlier guidance.” In addition to these results, the company then said they will be laying of 5,000 employees across the board, which is the first layoff this massive company has endured in its 30+ years.

1,400 Microsoft employees got laid off yesterday and the remaining will happen over the next 18 months. All Things Digital continued to say, “Microsoft said it would not give profit and revenue guidance for the rest of the year, because of the economy’s turmoil. Apparently, even the smartest of techies have little insight to this very foggy financial situation.”