Microsoft U-Turns on Severance Clawback

(NEWSER) - Microsoft surprised the street today by releasing its earnings early, and they weren’t pretty. The software giant’s revenues inched up only 2%, below earlier guidance, and its net income dropped 11%. More alarming, the company said it was slashing 5,000 jobs, starting with 1,400 today, which amounts to 5.5% of its workforce. “We are not immune to the effects of the economy,” said Steve Ballmer. More»

Need to trim costs in weak economy has software firm looking at rare cuts

(NEWSER) - Microsoft could be considering the first large-scale layoff in its history, as it looks for ways to trim costs, reports the Wall Street Journal. Up to 15,000 positions are rumored to be at risk—6% of its workforce—but insiders say the cuts, across all divisions, are likely to be lower. CEO Steve Ballmer last week said Microsoft, known as one of the "steadiest ships" in the tech industry, was working at “finding our right balance,” but he declined to comment on layoffs. More»

Demand for colorful clogs tanks

(NEWSER) - Crocs, the maker of hugely popular colorful plastic clogs, suffered a $148 million third quarter loss on a 32% drop in demand in Europe and the US. The Colorado-based company has shuttered a factory in Canada, will close another in Brazil next month, and has amassed extensive unsold inventory, reports the Rocky Mountain News. More»

Eugene Isenberg would have donated severance pay to charity

(NEWSER) - Eugene Isenberg probably managed to sidestep some of the ire of the 99% with this decision: The former CEO of Nabors Industries agreed to waive his $100 million termination payment when he was replaced as chief executive. Isenberg, who will be kept on as chairman, "certainly didn't need the money," says a spokesperson for the oil-drilling contractor. He was planning to donate the severance payment to charity anyhow, and decided to waive it because the decision "was in the best interest of shareholders," the spokesperson adds. More»

Airline will emerge from bankruptcy with fewer workers

(AP) - The parent of American Airlines wants to eliminate about 13,000 jobs—15% of its workforce—as the third-biggest US airline remakes itself under bankruptcy protection. The company aims to cut labor costs by 20%, and will soon begin negotiations with its three major unions. AMR Corp. CEO Thomas W. Horton said today that the company hopes to return to profitability by cutting spending by more than $2 billion per year and raising revenue by $1 billion per year. More»