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Welcome to Microsoft Pri0: That's Microspeak for top priority, and that's the news and observations you'll find here from Seattle Times reporter Sharon Chan.

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April 20, 2009 12:56 PM

Analyst: More layoffs at Microsoft possible

Posted by Sharon Chan

Sid Parakh, analyst at McAdams Wright Ragen, released a report today ahead of Microsoft's earnings report saying that Microsoft could be considering job cuts beyond the 5,000 announced in January.

"As a likely consequence of tougher business conditions, our checks indicate that Microsoft may embark on another round of restructuring in the near future," Parakh wrote. He said he did not have details on size, time frame, location, business units, timing or whether it would affect outside contractors.

He also said he expects earnings results to be lower than previously projected, although the company did not provide financial guidance in the last call.

It would be a change in tone from what the company was saying as recently as a week ago, when head legal counsel Brad Smith said at an Elevate America news conference, "There have been no changes in outlook going forward" regarding layoffs.

The company still plans to cut 5,000 total jobs through 2010, including the 1,400 announced in January. Smith also said the company still plans to create 2,000 new jobs in that period.

The third-quarter earnings report is scheduled for Thursday.

Update 3:14 p.m.: I reached Microsoft spokesman Lou Gellos, who sent over this statement: "As we said in January, we will continue to assess the market and economic situation over the next 18 months and make adjustments as needed. Beyond that, we have no other details to share."

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