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Analyst: Microsoft staff cuts would be "healthy"

Time: 23:58 EST/04:58 GMT | News Source: Seattle PI | Posted By: Kenneth van Surksum

Responding to unsubstantiated rumors of possible Microsoft lay offs, Oppenheimer & Co. analyst Brad Reback wrote in a report Monday that lay offs at Microsoft would be "well-received" by Wall Street and "signal that profitability is more important than revenue growth during this very difficult time."

"While a 10 percent (reduction in force) would be hard for those impacted, we believe it would be a healthy move for the company as it would help rationalize the tens of thousands of employees who have been hired over the past several years," Reback wrote.

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