Microsoft joins the rest of the world in layoffs, pertaining to the company's dismal second quarter financial results. Sales of microsoft windows have decreased considerably due to the economic situation. To help it cope with that lower base of demand, Microsoft said that it would lay off up to 5,000 employees, or about 5 percent of its work force — the first significant cuts in the company’s 34-year history.
Intel also a leader in chip industry announced the plan to lay of around 5000-6000 employees and shut down some production plants. Rather than recession companies are witnessing a fall in consumer base. Of course this seems to be a loop around effect, with individuals and business units cutting costs thus leading to declined sales. In turn this causes further unemployment. This may on for a while unless governments eases the cash flow into the economy.