Today, Microsoft has become the latest major technology company to cut jobs during a period of growing economic uncertainty. bloomberg reports that the Redmond-based firm is “realigning business groups and roles” after the close of the fiscal year (June 30), despite the fact that the company intends to increase headcount in the coming months.
The layoffs are reported to affect less than 1% of Microsoft’s 180,000 employees and have no clear pattern in terms of geography or product division, affecting teams, including customer and partner solutions and consulting. They come after Microsoft slowed down recruitment for Windows, Teams and Office, while reassuring that recruitment was unaffected by industry hurdles.
“Today we had a small number of exceptions from the roles. Like all companies, we regularly evaluate our business priorities and make structural adjustments accordingly,” Microsoft said in an emailed statement to Bloomberg. “We will continue to invest in our business and increase our overall headcount in the coming year.”
Microsoft reported strong earnings in the third quarter, with cloud computing revenue up 26% year-over-year and total revenue of $49.4 billion. But in early June, the company revised down its fourth-quarter revenue and earnings forecast, citing the impact of currency fluctuations.
Bloomberg notes that in recent years, Microsoft has typically announced job cuts shortly after the July 4th holiday in the US, as it made changes for the new financial period.
Layoffs in the tech sector have accelerated over the past few months as recession-fearing investors retreat. Startups, especially those in capital-intensive areas such as delivery, events and fintech, are bearing the brunt. But as unfavorable conditions persist, a domino effect occurs. Oracle, for example, is considered Considering a $1 billion cost-cutting initiative that would include thousands of layoffs.
Beyond Microsoft and Oracle, Twitter let go a third of his recruiting team last week. Tesla was dismissal hundreds of employees in the last month. And groups at Meta are preparing for layoffs after company managers were reportedly told bad performers to “go to the exit”. Meta, which according to CEO Mark Zuckerberg is in the midst of “one of the worst recessions… in recent history,” previously said it would cut its target number of new engineers this year by about 30%.
Nvidia, Lyft, Snap, Uber, Spotify, Intel and Salesforce are among other public tech companies that have slowed down recruitment this spring. So far, Google, IBM and Amazon have not taken similar steps.
Credit: techcrunch.com /