‘Microsoft Corp. said it will cut 5,000 jobs, marking the software giant’s first-ever significant round of layoffs, as the company reported an 11% drop in fiscal second-quarter earnings and pulled its forecasts for the year.

News of the layoffs and results, which Microsoft released hours earlier than expected, sent shares of the Redmond, Wash., company near 11-year lows and rattled the technology stock sector. Microsoft shares traded down $1.67, or 8.6%, to $17.71 in midday trading on the Nasdaq Stock Market.

Microsoft is “on the defensive here and that is not what people want to see from a bellwether,” ‘

And from the looks of that, Microsoft aren’t doing it by attrition (read: the nice way). Perhaps now when I call in about an RROD or E73 issue they’re not going to ask me ‘Have you tried turning it on and off‘ six more times.

Source: Wall Street Journal