Microsoft, who already announced 5,000 employee layoffs, may have more to come

With story from Microsoft Pei0

Microsoft, who already announced 5,000 employee layoffs, is hinting it may lay off even more staff as the recession deepens its grip on the technology sector. Computer upgrades are one of the last things businesses do during a recession, unless they are forced. Sharon Chan in the blog Microsoft Pri0 reported.

Sid Parakh, analyst at McAdams Wright Ragen, released a report today ahead of Microsoft’s earnings report saying that Microsoft could be considering job cuts beyond the 5,000 announced in January.

 

“As a likely consequence of tougher business conditions, our checks indicate that Microsoft may embark on another round of restructuring in the near future,” Parakh wrote.

 

He said he did not have details on size, time frame, location, business units, timing or whether it would affect outside contractors. He also said he expects earnings results to be lower than previously projected, although the company did not provide financial guidance in the last call.