5,000 jobs at Microsoft Corporation will be cut over the next 18 months. After the announcement earlier this month, 1,400 jobs were cut immediately. “Economic activity and IT spend slowed beyond our expectations in the quarter, and we acted quickly to reduce our cost structure and mitigate its impact,” said Chief Financial Officer Chris Liddell. 5,000 jobs equates to 5% of its workforce, although overall workforce is not expected to drop that much as they continue to hire in key areas. Other expense cuts, like delayed salary increases, were also announced. The announcement also included a warning that profit and revenue will most certainly drop over the next two quarters. The news sent shock waves across financial markets. Other software companies have announced major cuts as well: SAP to cut 3,000; Autodesk to cut 750; IBM to cut 2,800.