Mass. Microsoft workers avoid layoffs - for now

Stung by a dramatic slowdown in personal computer sales, software titan Microsoft Corp. is laying off up to 5,000 workers worldwide, or about 5 percent of its workforce, over the next 18 months, including 1,400 who lost their jobs today.

No Microsoft workers in Massachusetts were affected by today's cuts, but they may not be so lucky as the layoffs continue. Microsoft, which has its headquarters in suburban Seattle, has about 96,000 employees worldwide, and nearly 1,000 in Massachusetts.

"We're certainly in the midst of a set of once-in-a-lifetime economic conditions," said Microsoft chief executive Steve Ballmer, who announced the layoffs during a conference call that also revealed sharply lower revenues and profits at the world's largest software company.

Ballmer predicted that it could take years for the computer industry to fully recover from the present downturn.

Microsoft said that revenue for the second quarter ending Dec. 31 was $16.63 billion, an increase of 2 percent from the previous year, but about $1 billion less than Microsoft had forecast in October. Quarterly net income of $4.17 billion was 11 percent lower than last year.
(By Hiawatha Bray, Globe staff)