Microsoft loses CFO who oversaw biggest-ever cuts

Wed Nov 25 2009, 15:03 PM

Microsoft CFO Chris Liddell is leaving the company to be replaced by Peter Klein, currently finance chief of Microsoft Business Division. Liddell helped oversee Microsoft's streamlining efforts since joining the company in 2005, holding his executive post during what he claimed was "the most difficult economic environment" the company has ever faced.

At the beginning of the year, Microsoft announced it was cutting 5,000 jobs, while earlier this month it said it would axe a further 800, pushing the total to more than 6% of Microsoft's workforce. This came after Microsoft reported its first-ever quarterly revenue drop in April. Analysts say the cost-cutting measures have saved Microsoft some USD3bn thanks to Liddell's handling of the situation.

Though some of Microsoft's competitors are now claiming the worst of the recession is over, Microsoft CEO Steve Ballmer recently predicted that tough times would continue, with the technology sector forced to adjust to a "new normal". It seems Microsoft will still need an able finance chief who is not afraid to make further cuts.

Some say the hiring of Liddell's replacement, Klein, marks a return to its roots in technology entrepreneurialism. Klein has worked with a number of startups, including Homegrocer.com, which he helped take to a USD245m IPO in 2000. He has spent 13 years working in corporate finance in the Seattle area, close to Microsoft's headquarters in Redmond, Washington.

In contrast, Liddell came to Microsoft in 2005 as an outsider to the tech industry. He was previously CFO of International Paper and before that CEO of Carter Holt Harvey in his native New Zealand. He came to Microsoft as part of an influx of outside management, tasked with improving efficiency as the company saw its growth begin to slow.

Liddell will work with Klein until the end of the year, when he will step down. Liddell is rumoured to be considering starting his own company.