Software giant Microsoft, which has announced laying off 5,000 employees including 55 in India,

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on Tuesday said that it may look at more layoffs if the economic downturn dramatically worsens again.

"Presuming the economy hopefully stays as bad as it is and doesn't get dramatically worse, we will finish our plan, but if it gets dramatically worse again, we will look at things again," Microsoft Corporation CEO Steve Ballmer, told reporters here.

The Redmond-based company had in January announced that it would axe 5,000 jobs globally amid the ongoing slowdown.

It yesterday announced slashing one per cent of its 5,500-strong Indian workforce, amounting to 55 layoffs, in a bid to realign its business in the country.

It added that it would continue to hire and create employment opportunities in line with the recovery and growth of the Indian economy.

"We had said that we would lay-off about 5,000 people. We are still filling other jobs. We are mostly through that process globally and there is still some work to do," Ballmer said.

"There are areas where we are continuing to add people. As I said, these are global additions, so it is a little hard to separate our work globally from our work in India," he added.

Ballmer said Microsoft is the second largest foreign IT employer in India and that he doesn't see a change in that.

In the second round of job-cuts effected on May 5, the software major announced it would lay off 3,000 employees. In January, Microsoft had laid off 1,350-1,400 people, largely in the US.

The Bill Gates-led firm said it would make strategic investments, which are best suited to the current economic environment.