Microsoft (MSFT) announced earlier this morning it would be eliminating 5,000 positions over the next 18 months in its first company-wide layoffs ever, with 1,400 job cuts coming later today.
But for those Microsoft employees lucky enough to hang onto their job, the squeeze will still be felt, Microsoft’s 10-Q shows. New cost-saving measures:
- No merit-based pay increases over the next fiscal year
- Travel budgets will be slashed
- Capital expenditures are being cut, with plans for new office space being put on hold
The company also says it will be reducing “reducing marketing spending” going forwards.
We hope “reducing marketing” means a smarter use of ad dollars, not fewer campaigns. Microsoft will need to aggressively market Windows 7 to recover from the Vista misstep and counter Apple’s ongoing ad blitz.
But here’s one easy way to save on marketing: Stop writing $10 million checks to ageing comedians like Jerry Seinfeld, whose “Windows is delicious” antics largely failed to click with consumers.
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