Microsoft Cuts Workforce, Ends Growth Era

Yesterday's pre-market open announcement by Microsoft that it is cutting 5,000 of its 91,000 employees marks the first time the company has trimmed its workforce.

For some, this is a sign that the firm is no longer a high-growth technology company. For me, though, charts like the one nearby have said it for years, as my prior posts on the company have stated.

For the past five years, Microsoft has been unable to outperform the S&P500Index. Say what you will about employee or revenue growth, the total return simply hasn't provided sufficient, risk-adjusted reasons for holding the equity, versus the index.

One fund manager on CNBC today complained bitterly of the firm's pre-open announcement, and swore never to hold any of Microsoft's equity ever again.

The layoffs were blamed, in part, for the major selloff of the equity market from the opening bell.

I haven't seen Microsoft in my equity portfolios for over a decade. Looks like market perceptions are finally catching up with mine.