Hot on the heels of Intel's announcement that it may be cutting 5 000 jobs, Microsoft will also lay off 5 000 employees – about 5% of its workforce.

This is the first time in the company's history that it has made significant job cuts.
CEO Steven Ballmer told analysts yesterday that Microsoft is not anticipating a quick turnaround in the economy.
Significantly, the software giant recently reported that its income for the alst quarter fell by 11%.
Meanwhile, chip maker Advanced Micro Devices has reported a 33# drop in fourth quarter revenues along with the $1,42-billion loss. It has already disclosed plans to cut almost 9% of its staff.