Microsoft
will cut an additional 2850 jobs on top of the 1850 announced in May. The
newest round of cuts brings the total job losses at the software giant to more
than 12,000, largely as a result of the company’s Nokia fiasco.
In
its annual report filing to the US Securities and Exchange Commission, as
reported by itwire.com, it revealed it had eliminated 7400 positions in the
2015-16 financial year, primarily from its phone business and that a further
4700 would go before the end of FY 2016-17. Most of those affected have already
been advised.
The
report says that of its 114,000 employees, 38000 were in operations, including
manufacturing, distribution, product support, and consulting services; 37000 in
product research and development (14% of revenue is spent here); 29000 in sales
and marketing (17% of revenue); and 10000 in general and administration (5% of
revenue).
Under
the heading “Risk Factors” it warned: “We face intense competition across all
markets for our products and services, which may lead to lower revenue or
operating margins. Our competitors
range in size from diversified global
companies with significant research and development resources to small,
specialized firms whose narrower product lines may let them be more effective
in deploying technical, marketing, and financial resources.
“Barriers
to entry in many of our businesses are low and many of the areas in which we
compete evolve rapidly with changing and disruptive technologies, shifting user
needs, and frequent introductions of new products and services. Our ability to
remain competitive depends on our success in making innovative products,
devices, and services that appeal to businesses and consumers.”
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