Wellington, Jan 23 NZPA - Microsoft New Zealand is not expecting any of the 5000 jobs being cut by parent Microsoft to be in New Zealand.

The world's largest software maker stunned Wall Street on Thursday with disappointing results and a plan to eliminate up to 5000 jobs over the next 18 months, including 1400 jobs on Thursday.

That amounts to about 5 percent of its estimated 96,000 work force, the biggest ever cuts by the software maker.

Microsoft NZ said it would not be affected and no job losses were planned here. The company employs about 150 staff, including contractors, in New Zealand.

The company's global chief financial officer is Chris Liddell, a well known New Zealand businessman.

Microsoft is experiencing weakness in the PC market and is being affected by the popularity of low-cost netbook computers, which have combined to badly undercut sales of its dominant Windows operating system.

Microsoft posted a lower than expected profit of $US4.17 ($NZ8) billion in its second quarter ended December 31.

Microsoft Corp's stock fell nearly 12 percent at one point to its lowest level since 1998.

"Microsoft pulled the rug out from under us," said Joe Saluzzi, co-manager of trading at Themis Trading in Chatham, New Jersey.

"Wall Street hates surprises -- don't surprise us like that."

The job cuts follow similar moves by other tech firms, including AT&T Inc, Dell Inc, Motorola Inc and Advance Micro Devices Inc, all of which are suffering from the global economic slowdown.

NZPA WGT Reuters pjg nb