Microsoft has announced plans to cut up to 5,000 jobs over the next 18 months, with 1,400 effective immediately.

The company will be eliminating jobs in research and development, marketing, sales, finance, legal, human resources and informational technology,

In today’s company earning report, Microsoft revealed that its profit in the second quarter had fallen by 11 percent from last year’s $4.71 billion to $4.17 billion and, given the current market volatility, said that it would be unable to offer financial predictions for 2009.

“We are not immune to the effects of the economy,” said Microsoft chief executive Steve Ballmer in the company’s earning report.

The job cuts, as well as other initiatives, are said to save the company $1.5 billion.

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