APAC to feel Microsoft's blade

Global - Microsoft will be forced to cut 5000 jobs in the next 18 months, the first big layoff in its history, as a result of the worsening economy.

A spokesperson for Microsoft told Marketing that 1,400 of the redundancies will happen immediately. The spokesperson said the impact on Asia Pacific in terms of job losses will be minimal, with Singapore spared, and the region taking a small hit.

“I can confirm that the number of employees affected by the immediate job eliminations is a single-digit number across Asia Pacific (excluding China, India and Japan).   I can also confirm that there is no impact to the Microsoft Singapore subsidiary as a result of the immediate job eliminations announced yesterday,” the spokesperson said.

The spokesperson for Microsoft also declined to give details on whether the job cuts would involve the company’s marketing staff. According to overseas media, the layoffs will affect workers in research and development, marketing, sales, finance, legal and corporate affairs, human resources and information technology, and be centered mostly in Microsoft’s Redmond office in the US.

Microsoft has been hit by declining sales and reported a second quarter drop in profit of 11%.

"We're certainly in the midst of a once-in-a-lifetime set of economic conditions," Steve Ballmer, Microsoft’s CEO, said in a conference call with investors.

Microsoft's announcement of job cuts follows those made recently by brands such as Yahoo, Google and Lenovo.

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