Microsoft's Ballmer calls for $1bn cuts

Microsoft CEO Steve Ballmer has told employees in an email that he wants the company to save $1bn in the coming year – and if that means getting rid of company drinks machines, that's a step he's prepared to take.

The memo suggested that the world's biggest software company could save itself hundreds of millions if it revamped its advertising and marketing behaviour. Other cuts have already been decided on, like reducing the discount Microsoft employees get knocked off their prescription drugs.

The bid to reduce costs has also meant that new employees to Microsoft will get less annual leave and less time in which they can take their parental leave. Other, smaller bonuses were removed - the towels disappeared out of the Microsoft locker rooms, for example.

However, in the initial round of cost-cutting, there were promises the company wouldn't take the axe to its free drinks policy. In these tough times, nothing is sacred, it appears.

Ballmer told the Seattle Times: "We're looking to take cost out of the delivery of soda pop. That may mean going from coolers to soda dispensers."