Microsoft executive says layoffs offset by more R&D

Up to 3000 employees could be needed for Microsoft's research efforts this year, in part offsetting layoffs, a top company executive said Tuesday.

Up to 3000 employees could be needed for Microsoft's research efforts this year, in part offsetting layoffs announced in January, a top company executive said Tuesday.

Microsoft's Chief Operating Officer Kevin Turner said during a keynote speech at the Cebit trade show that the remainder of this year will continue to be challenging as the global economy faces a severe downturn.

Microsoft said in January it would cut 5000 positions as it saw its net income fall 11 per cent for the quarter ending Dec. 31. The company said the job cuts would come in marketing, sales, finance, legal and human resources among other areas over the next 18 months.

Turner said Microsoft plans to spend $US9 billion on research this year new , $1 billion more than 2008. New positions will be created as the company analyses its business, he said.

"This alignment and realignment will also allow us to reassign some employees to new priorities and that we may create 2000 to 3000 new jobs over the same time frame as we continue to invest in new growth opportunities," Turner said.

Turner said the world economy saw incredible growth for many years but that it was fueled by an increase in consumer debt. He said the economy will have to "reset" itself, centering more on innovation and growth rather than growing private debt.

Part of Microsoft's research efforts are centered in Europe, including the company's U.K. research facility and a search technology center in Munich, Germany. Microsoft said last October it would also do search research in London and near Paris. Microsoft has sought so far unsuccessfully to unseat Google as the most-used search engine.

Turner said Microsoft will focus on so-called cloud computing and software as a service, where remote data centers do the computing and deliver the results to client computers.

Join the Good Gear Guide newsletter!

Error: Please check your email address.

Tags Microsoft

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Jeremy Kirk

IDG News Service
Show Comments

Essentials

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Michael Hargreaves

Windows 10 for Business / Dell XPS

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?