It’s 23 years since Microsoft went public, and in that time they’d never experienced a dip in revenue or profits – until today. Welcome to the recession.
In its earnings statement for the first quarter of 2009, the company showed revenue of $13,65 billion, down 6% on the same period in 2008, while profits took a fall of 32% to $2.98 billion, which includes write-downs of $420 million in the value of investments as well as severance charges of $290 million to cover job cuts.
Microsoft CFO, Chris Liddell, called this recession “the most difficult economic environment the company has faced in our 30-year history" and said:
"While we’d all like to think the economic recovery will be soon and painless, we unfortunately think it will be slow and painful."
Microsoft has been cutting costs, and is shedding some 5,000 jobs.
Stock in the company rose 4% in after-hours trading.
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