Ever since its 1975 inception, Microsoft Corp has made staff cuts to a rather limited extent, and that too as a result of reorganization of product groups or acquisition of companies. And hence, its latest announcement of the company planning 5,000 job cuts is an indication that - as its senior communications manager in Fargo, Katie Hasbargen put it - the recession "has finally hit home!"

The first ever mass layoffs, from one of the richest companies of the world, come due to a falling demand for personal computers. And, Microsoft's Fargo campus is also going to bear the brunt of the decision; though most cuts are expected at the company's base - Redmond, Washington.

According to Microsoft officials, the Fargo campus "is taking a small hit" from the company's plan to layoff more than 5,000 employees over the next 18 months. The campus, with 1,000-plus employees, has been under expansion for handling company operations, like payroll, customer support, and information technology.

Hasbargen said that even though the cuts in the Fargo campus are "a small percentage" of the total number announced, it is far from small for those who are at the receiving end. She added that the company was trying its best to be sensitive towards the employees being laid off.

Hasbargen reiterated that with the jobs-cuts, Microsoft intended readjustment of priorities and, as such, the employees laid off are not underperforming employees, "These are people who were in areas where priorities have changed."