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Microsoft aims to save $1B this fiscal year

Time: 09:07 EST/14:07 GMT | News Source: ActiveWin.com | Posted By: Brian Kvalheim

Microsoft Corp. customers have heard the vendor profess that its software allows them to "do more with less," but now it's Microsoft employees' turn: The company is cutting back on benefits. Microsoft plans to save nearly US$1 billion through efficiency improvements and cost-cutting in its 2005 fiscal year, Microsoft Chief Executive Officer (CEO) Steve Ballmer said in his annual strategy e-mail message to employees on Tuesday. The company's new fiscal year started on July 1. Over the past three years, expenses at Microsoft have grown faster than revenue. "This is obviously not a trend we can continue," Ballmer wrote. The company's plan to save money includes better coordinated marketing, which should save hundreds of millions of dollars, according to Ballmer.

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