Tough times ahead

Microsoft Corp is expected to post a quarterly profit that misses its own target and announce thousands of job cuts today as the global economic slump hurts even the technology industry's biggest players.

When the leading software maker reports fiscal second quarter results, investors are likely to press for comments on its outlook and on Yahoo Inc, whose search business has been the object of Microsoft's desires.

The report comes against a backdrop of a wounded global economy that has stifled demand for everything from personal computers to business software and video games, all markets in which Microsoft is a significant player.