Microsoft shuttered, put a hold on and let go of 13 products in the past eight months to help it cut costs, following a profits dive at the company that led to job cuts.

According to a report published yesterday by analyst outfit Directions on Microsoft, Redmond is expected to cull more of its software and web-based products over the coming months to help it cut back on spending.

“While some cancellations are probably the result of cost-cutting efforts, others may have been planned before the downturn or continue trends that started a long time ago.”

Indeed, the firm’s MSN Encarta encyclopedia website and software is one such victim of a planned culling. MS confirmed in March that it was pulling the plug on the product following Wikipedia's obliteration of the online reference market.

Similarly, Microsoft has eliminated other packaged consumer software, such as Digital Image Suite, Autoroute and Equipt, noted Rosoff.

“Nonetheless, as Microsoft continues to reduce costs, product development will be impacted,” he said.

“Understanding the characteristics of cancelled products - as well as characteristics that can protect seemingly unsuccessful products - could help partners and customers identify products that are most likely to become victims of the cost-cutting drive.”

Microsoft announced in January that it would lay off 5,000 workers. Boss Steve Ballmer admitted the firm had been forced to make the job cuts - the first in its history - to reel back spending in the face of a shrinking world economy. ®

Related stories

• Microsoft adopts Say-on-Pay measure for shareholders (21 September 2009)
• HP offers EDS staff unpaid leave, cuts in hours (17 July 2009)
• BT offers staff time on hold (6 July 2009)
• Microsoft to offload digital ads agency? (29 June 2009)
• Microsoft abolishes Money (11 June 2009)
• Ballmer clashes with Obama over US tax rules (4 June 2009)
• Ballmer email kicks off second round of Microsoft layoffs (5 May 2009)
• Microsoft downsizes Seadragon and Photosynth brains (9 April 2009)
• Microsoft kills MSN Encarta (30 March 2009)
• Microsoft asks laid-off staff to refund overpaid redundo cash (23 February 2009)
• Microsoft confirms Equipt kill date (18 February 2009)
• Microsoft's Equipt kill date remains MIA amid retail carnage (27 January 2009)
• Microsoft axes 5,000 staff as Q2 profit dives 11% (22 January 2009)
• Comment Microsoft flogs subscriptions to the unwary and confused (3 July 2008)