Microsoft slashes up to 5,000 jobs; 1400 today - first time in its 34 yr history

Microsoft slashed 1,400 jobs already today, and another 3,600 more over the next six months.

Software maker Microsoft Corp. announced Thursday it will cut up to 5,000 jobs in the next year and a half, or 5.5% of its global workforce, citing further deterioration of global economic conditions.

The company also posted lower fiscal second-quarter earnings that missed analysts' forecasts. Microsoft will slash 1,400 positions immediately, with the rest of the cuts coming by June 2010. The company also said it will freeze employees' pay in 2009.

Microsoft said it will save about $1.5 billion in operating expenses and $700 million in 2009 capital expenditure from the job cuts and pay freeze.