Microsoft posted their second quarter results today. Desktop software sales were down 8%. Server licensing was up 15%. Games (X-Box) is doing well, as was reported in Irish media, bucking the general trend. Due to market instability, MS is not providing guidance on performance for the rest of their fiscal year.
Some 5000 redundancies were also announced. This is much less than the numbers that had been rumoured before. 20 out of 1200 are rumoured to be affected in Microsoft Ireland.
"In light of the further deterioration of global economic conditions, Microsoft announced additional steps to manage costs, including the reduction of headcount-related expenses, vendors and contingent staff, facilities, capital expenditures and marketing. As part of this plan, Microsoft will eliminate up to 5,000 jobs in R&D, marketing, sales, finance, legal, HR, and IT over the next 18 months, including 1,400 jobs today. These initiatives will reduce the company’s annual operating expense run rate by approximately $1.5 billion and reduce fiscal year 2009 capital expenditures by $700 million".