May 9--Layoffs at the world's largest software company are hitting the Triangle's economy.

Microsoft announced earlier this year that the recession would force its first mass layoffs, about 5,000 jobs. This week, the Redmond, Wash., company notified the N.C. Commerce Department that those cuts will include 55 positions at an outpost in North Raleigh.

Workers were notified this week. On Friday afternoon, the last day for some employees, a grim mood hung over the office on Six Forks Road, where about 100 workers design software.

Local executives referred questions to Microsoft's headquarters.

Microsoft senior attorney Michael Fitzsimmons, who signed the notice filed with the state, did not return calls seeking comment. Outside spokeswoman Anne Culp would confirm that the jobs were cut but declined further comment.

The local layoffs, while a small number of jobs in the overall economy, are the latest blow to the Triangle's high-tech workforce. Tech titans with large local operations such as IBM, Nortel Networks and Sony Ericsson have slashed hundreds of jobs. That has helped push up this region's unemployment rate to a historically high 8.3 percent.

And tech layoffs tend to have a larger ripple effect because those employees typically are highly paid.

"All jobs are important, but the total impact from tech jobs may be greater," said Michael Walden, an N.C. State University economist. "Those salaries get respent and recycled in the local economy. You go to the mall and buy shoes and clothes, that becomes income for mall employees."

The local tech cuts are causing pain for workers and their families, but also creating opportunities for smaller tech companies looking to attract talented employees.

Raleigh software maker Red Hat, a top Microsoft rival, continues to hire. Red Hat added 600 employees during its fiscal year that ended in February. Its Web site currently lists 25 openings in Raleigh.

Microsoft in late January announced its first companywide job cuts, as consumers and businesses reduce technology spending. This week, CEO Steve Ballmer hinted that more layoffs are possible. "As we move forward, we will continue to closely monitor the impact of the economic downturn on the company and, if necessary, take further actions on our cost structure including additional job eliminations," he wrote in an e-mail to employees.

alan.wolf@newsobserver.com or919-829-4572

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