From PC World: Microsoft's first-ever layoffs point to a need for the company to rethink its Windows client business, which is largely responsible for the disappointing financial results that led to thousands of Microsoft job cuts announced Thursday.
Microsoft's second-quarter results Thursday, in which net profit fell 11 percent, show that the company is still largely dependent on its Windows client business for its financial health. That business in turn is dependent on the market for PC sales, which is currently flat and shows no signs of improving over the short term.
Microsoft has been trying to diversify its revenue for some time and has made incremental progress. But until other parts of the business begin to pull in more revenue, the company should examine ways to keep its Windows client business from damaging its overall financial health if the current economic condition worsens, analysts said.
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