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Microsoft intends to remove thousands of positions, some of which are believed to be in the engineering and human resources departments according to media reports on Tuesday.
The anticipated job losses would be the most recent in the American technology sector, where businesses like Amazon and Meta Platforms have announced retrenchment plans in response to sluggish demand and a worsened prognosis for the world economy. The action by Microsoft could be a sign that employment losses in the IT industry will persist.
According to Morningstar analyst Dan Romanoff, “from a broad viewpoint, another looming round of layoffs at Microsoft implies the situation is not improving and probably continues to worsen.”
According to sources cited by U.K. network Sky News, Microsoft intends to eliminate 11,000 jobs or around 5% of the workforce. According to a source familiar with the situation, the firm expects to make job cuts in many technical departments on Wednesday. The insider also revealed that Microsoft may reduce its recruitment personnel by up to one-third.
According to the Bloomberg article, the cutbacks will be far deeper than in prior rounds.
As of June 30, the corporation employed 221,000 full-time employees, including 122,000 in the US and 99,000 abroad, according to documents. After the personal computer industry suffered for several quarters, Microsoft is under pressure to keep Azure’s growth rates up. This is because Windows and device sales were negatively impacted.
A few positions had been cut back; it had started in July of last year. Axios, a news outlet, claimed in October that Microsoft has fired less than 1,000 workers from several businesses. Microsoft’s stock was just a little bit higher in late afternoon trade; the company is scheduled to release its quarterly results on January 24.
