Microsoft Cuts 5,000 Jobs Amidst Claims Of Rare Loss In Windows/Office Business

While its total revenue did continue to grow this year to $16.63 billion, Microsoft's net income dropped 11% to $4.17 billion, and Microsoft's client group revenue dropped 8%. A poor global economy has naturally cropped up in the company's analysis of its losses, but more specifically Microsoft fingers poor netbook sales as the culprit.

Rather than buy netbooks with Vista, buyers went for lower-end PCs that can come with cheaper XP licenses.

1,400 jobs have been cut immediately and more will follow, bringing the total to 5,000. This after $600 million of cost-cutting that had already been in the works.

News from Microsoft's Entertainment and Devices group was more positive, with a 3% growth riding 6 million Xbox 360 units sold during the holidays. Server & Tools also reported a 15% boost, which is owed to annual licensing.

Microsoft declines based on netbooks, cuts 5K jobs [Electronista]