ieXbeta Board > Microsoft reportedly planning $1 bln cost cuts

Full Version: Microsoft reportedly planning $1 bln cost cuts

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Jul 9 2004, 12:04

<img style="float: right" src="http://www.iexbeta.com/images/news/logos/iexMicrosoft.png">Microsoft Chief Executive Steve Ballmer is planning to cut costs by $1 billion (540 million pounds) annually since the company's expenses have grown faster than its revenues for three years running, The Wall Street Journal reports in its online edition.

Ballmer sent out a memo to the software company's employees on Tuesday laying out a billion dollars in cost cutting and promised stepped-up innovation to boost the company's sales and stock price, the paper reported.

A Microsoft representative was not immediately available for comment.

In an interview with the paper, Ballmer for the first time confirmed the company would cut $1 billion in expenses in the current fiscal year, ending June 30, 2005, and said the cost cuts were necessary, according to the Journal report.

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