Microsoft CEO doesn’t Expect a Quick Economic Recovery

Microsoft CEO expects slow economic recovery

COLOGNE, Germany — Microsoft CEO Steve Ballmer said Friday that the company expects to have to deal with a weak economy for at least the next several years. Speaking at a forum on “Interfacing Media Future” in Cologne, Ballmer said Microsoft does not expect any quick economic recovery. “We are planning essentially for the economy to contract,” Ballmer said. “That may take two, three, four years, partly depending on government policy to ease some of the pain. Then we will see growth again.”

The comments came the day after Redmond, Washington-based Microsoft Corp. reported its quarterly revenue fell from the previous year for the first time in its 23-year history as a public company, while its profit dived 32 percent.

The declines illustrated the toll the recession has taken on the world’s largest software maker, even though Microsoft remains one of the richest and most profitable companies.

In January, Microsoft said it needed to resort to its first mass layoffs, cutting 5,000 jobs, and on Thursday it announced it would do away with merit pay increases for employees in the next fiscal year.