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Tech Giants Hit By Global Recession

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2009-01-23

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Software giant Microsoft adds to the list of companies groaning under the weight of the economic crisis as it announces its biggest layoff ever.
The maker of the popular Windows operating system is cutting 5-thousand jobs companywide in light of the further deterioration of global economic conditions.
The company says this will help save some 1.5 billion dollars a year.
The announcement comes after the company posted net income of 4.2 billion dollars for its fiscal second quarter ended last month‚ which is an 11-percent drop from the year before.
Microsoft's woes will add further agony to weekly jobless claims in the United States that have touched a 26-year high.
Worse still‚ major search provider Yahoo said it will freeze employee salaries to reduce costs.
It has already slashed 1‚500 workers‚ and is indicating that further layoffs may be inevitable.
The Labor Department says the number of claims last week jumped to 589-thousand.
That's a rise of 62-thousand compared to the week prior and equals the highest level since November of 1982.
The US economy closed a full year of worsening economic troubles in December with a total loss of 2.6 million jobs and unemployment at a 16-year high of 7.2 percent.
President Obama has placed priority on propping up the economy and is working to secure congressional approval for an 825-billion dollar stimulus package to kickstart growth.
Park Hyongki‚ Arirang News.
Reporter : solos6@arirang.co.kr

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