Microsoft prepares to shed workforce

Share post:

According to media reports, Microsoft intends to lay off thousands of employees, most likely from the human resources and engineering divisions.

According to Sky News, Microsoft is considering laying off about 5% of its workforce (over 10,000 jobs) out of a total workforce of more than 220,000 people. Adding that, Microsoft could announce the layoffs globally within a matter of days.

The cuts will be significantly larger than other rounds in the past year, a Bloomberg report said. While an analyst predicted that Wall Street would be surprised if the figure was not higher.

The company, which has bet heavily on the growth of cloud computing and now has a market capitalization of $1.78 trillion, is set to report second-quarter earnings next week.

If finalized, an announcement about headcount reductions is likely to be made before Microsoft’s chairman and CEO, Satya Nadella, updates investors on the company’s financial performance on January 24.

Thousands of jobs have also been lost by major technology companies such as Amazon, Meta, and Twitter in recent months. Tech companies cut more than 16,100 jobs in December alone. Last year, the industry shed the most jobs of any sector, with 100,000 jobs lost by 2022.

The sources for this piece include an article in Reuters.


Related articles

Apple faces backlash over recent ads

Apple is currently facing significant public backlash due to a controversial advertisement featuring a hydraulic press crushing various...

 Google executives face employee concerns amid profitsurge

At a recent all-hands meeting, Google employees voiced significant concerns regarding morale, cost-cutting measures, and the impact of...

Spotify CEO confesses to “rough times after layoffs” – stock price rises

In December, Spotify CEO Daniel Ek announced the largest round of layoffs in the company's history, cutting 1,500...

Zuckerberg shares his vision with investors and Meta stock tanks

In an era where instant gratification is often the norm, Meta CEO Mark Zuckerberg’s strategic pivot towards long-term,...

Become a member

New, Relevant Tech Stories. Our article selection is done by industry professionals. Our writers summarize them to give you the key takeaways