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Microsoft goes on permanent diet as result of sales slump – may relocate customer support to countries with cheaper labor

July 29, 2009 by Wayne Schulz

SteveBallmerSweating.jpg

As a result of Microsoft’s latest 29% earnings decline (Microsoft Profit Falls 29% as Software Demand Wanes) which was reported July 23, 2009 the company’s Chief Financial Officer Chris Liddel has stated that frugality will be a new way of life.

Speaking to Bloomberg in an article dated July 29, 2009 the company’s finance chief further stated that “this is a new diet regime where you slim down and stay down” adding “this is not a crash diet where you stop eating for a couple of quarters”.

Microsoft is coming off their first ever revenue decrease since the company went public. Revenue fell 17% last quarter and missed the average estimate of analysts in a Bloomberg survey by more than $1 billion.

As part of the cost cutting the article stated that Microsoft may relocate some customer support to countries with cheaper labor. There was no indicate what impact, if any, these cost cutting measures would have on Microsoft research and development efforts.

Bloomberg via ERP Users

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Filed Under: Sage software, Uncategorized Tagged With: microsoft, Wayne Schulz

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