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 newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags Microsoft

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

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?