Microsoft could announce layoffs in its engineering divisions as early as Wednesday.
San Francisco:
Microsoft is set to cut more positions from its global workforce, according to media reports on Tuesday, as the tech giant cuts workforce to navigate its way out of tough economic conditions.
Bloomberg News reported that the computer industry giant could announce layoffs in its engineering divisions as early as Wednesday.
A Microsoft spokeswoman told AFP the company would not comment on what it called a “rumor”.
The Washington state-based company, which industry trackers say has more than 220,000 employees, laid off its workforce twice last year.
A new layoff announcement will come a week before Microsoft reports its earnings for the final three months of last year.
“Over the past few weeks we’ve seen significant headcount reductions from giants Salesforce and Amazon,” Wedbush analyst Dan Ives said in a note to investors.
Ives told investors that Wedbush is expecting to cut 5 to 10 percent of its workforce in the tech sector.
Ives wrote, “Many of these companies were spending money like the rock stars of the 1980s and now need to reignite spending under softer (macro-economic conditions).”
Amazon announced in early January that it plans to cut more than 18,000 jobs from its workforce, citing an “uncertain economy” and the fact that the online retail behemoth has “increasedly hired” during the pandemic. was kept”.
The job-slashing plan is the largest among recent layoffs that have hit the sometimes unrelenting US tech sector, including giants such as Facebook-owner Meta.
Some of Amazon’s layoffs will be in Europe, CEO Andy Jassy said in a statement to employees, adding that affected workers will be notified starting Wednesday, Jan.
Major platforms with advertising-based business models are facing budget cuts from advertisers, who are reducing spending in the face of inflation.
Meta announced the loss of 11,000 jobs in November, or about 13 percent of its workforce. In late August, Snapchat let go of about 20 percent of its employees, about 1,200 people.
And in early January, IT conglomerate Salesforce announced it was laying off about 10 percent of its workforce, or just under 8,000 people.
Twitter was bought in October by billionaire Elon Musk, who immediately fired nearly half of the social media platform’s 7,500 employees.
Another unknown number resigned in protest of his change in policy.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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