A sign of the economic times, Microsoft just announced that, effective immediately, 1,400 jobs will be cut and a total of 5,000 jobs (around 5.5% of Microsoft's global workforce) will be cut by June 2010. The announcement was made after today's release of lower than expected fiscal Q2 earnings and is the first mass layoff announcement in the company's 34 year history.

The cuts will save Microsoft $1.5 billion in operating expenses as well as $700 million in 2009 capital expenditure, but the news instantly shot Microsoft stock down 9% after the announcement. Hopefully our Xbox peeps aren't affected by the cuts as we wish the best for all Microsoft employees involved. Stupid economy.

[Via Joystiq]

This article was originally published on Joystiq.