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Microsoft axes another 800 jobs

More 'headcount adjustments' still possible

The bloodletting at Microsoft continues, as the software behemoth said Wednesday it would eliminate 800 jobs in addition to the 5,000 positions it has already pared this year.

A Microsoft spokesman said the cuts will be broadly "spread across multiple businesses and locations," and added that the company will continue to hire in priority areas. Microsoft had 91,005 employees worldwide at the end of September, according to The Seattle Times.

The cuts come as newcomers such as Google and a bleak global economy have taken some of the swagger out of Microsoft's stride over the past decade. In January, when Microsoft announced its first job cuts ever, CEO Steve Ballmer said they came as his company faced the most challenging economic climate in its 34-year history. Last month, Redmond reported a whopping 14-percent drop in first-quarter revenue, and in April it reported its first sales drop ever.

The additional firings, which come amid cuts in travel, entertainment and other expenses, suggest that Microsoft has yet to see significant signs of improvement. When they are completed, Microsoft will have eliminated 5,800 positions.

The first 1,400 of those came on January 22, and another wave hit in May. Microsoft this year has also taken the ax to its MSN Direct - which provides weather, traffic and other services to devices such as in-car map systems - and Massive, its in-game ad unit.

The company spokesman held out the possibility of "additional headcount adjustments," and he didn't specify which divisions would see cuts. ®

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