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Microsoft to widen job cuts past 5,000?

updated 05:40 pm EDT, Mon April 20, 2009

MS Job Cuts May Widen

Microsoft may extend its ongoing job cuts beyond the 5,000 positions already marked out, multiple sources said today. McAdams Wright Ragen analyst Sid Parakh relays to TechFlash that Microsoft may be cutting more jobs in the short term beyond those already outline in its plan. Few details are available, including whether it would just involve a minor change or else a substantial expansion of the original plans.

The cuts, if authentic, may stem from expected poor performance in the first calendar quarter of the year, as Parakh predits Microsoft is likely to perform worse than the consensus provided by most analysts. A large part of the hesitation would reportedly stem from large businesses, which have been hesitant to spend significant amounts on licenses for Windows or business software in a continuing bleak economic situation.

Many, though not the majority, of job losses from the previous round are believed to have had their roots in the Windows Mobile and Zune divisions, where a consolidation of the two groups to save money and expand Zune beyond media players had the greatest effect.

Microsoft has turned down an opportunity to comment on the rumor.

by MacNN Staff



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