Microsoft Cutting Jobs in Advertising

Microsoft MSFT, the hardware and software designer and developer, is cutting jobs in the areas of marketing and advertising. According to the Wall Street Journal, a Microsoft spokeswomen told them in an email that, "I can confirm that there were job eliminations today at Microsoft. I can assure you we're thinking about the exciting new opportunities that Windows 8, Xbox and Skype present for our advertising and marketing partners." At the time of writing, Microsoft has not revealed how many people will be losing their jobs, but the company has one eye on the fact that it spent $10 billion on sales and marketing during the nine months ending March 31. Microsoft has already laid off 200 people this year as it looks to restructure its advertising and marketing operations. It's an interesting approach for the company - it is a common occurrence in business that a company will cut the advertising budget during tough times, when they arguably need it most. Investors should hope that the key word is "restructure", that Microsoft is changing the way it approaches advertising and marketing, rather than simply reducing the amount that it does. On Thursday, Microsoft traded at about $28.80, down roughly 1.7 percent. Follow me @BCallwood.