New York: As the effects of the world economic crisis Microsoft has announced plans to slash up to 5,000 jobs. It would be the first job reductions ever in the company’s history.

The Seattle, Washington-based firm, in making the announcement, also said that its earnings in the second quarter of its present 2008-2009 business year fell by 11 per cent, to $4.17 billion.

The earnings in the quarter ending December 31 came on sales revenues of $16.63 billion, down 2 per cent, Microsoft said.

In the job reductions, some 1,400 will instantly carried out, with the remaining to take place over the next 18 months, Microsoft said, while other cost reduction efforts across a broad spectrum would also be implemented.

Microsoft said that in vision of the unsure world economic environment, it might not give any detailed earnings projections, but that the second half of the present business year was nearly sure to show lower profits and sales.