According to reports in the media on Tuesday, Microsoft is preparing to eliminate additional roles from its global staff as computer companies continue to reduce headcount to challenging economic times. According to Bloomberg News, the venerable company in the computer industry may announce layoffs in its engineering divisions as soon as Wednesday. Microsoft declined to comment on the “rumour,” a spokeswoman for the business told AFP.
In light of softer macro-economic conditions, many of these corporations need to rein in their expenditures
The Washington-based corporation, which according to industry watchers employs over 220,000 people, reduced its workforce twice last year. A week before Microsoft is scheduled to release its earnings for the final three months of last year, a new layoff announcement would be made. “Over the last few weeks we have seen significant headcount cut reduction from stalwarts Salesforce and Amazon,” Wedbush analyst Dan Ives said in a note to investors.
Ives informed investors that Wedbush anticipates additional personnel reductions in the tech sector of between 5 and 10 per cent. In light of softer (macro-economic conditions), many of these corporations need to rein in their expenditures after behaving like 1980s rock stars, according to Ives. Early in January, the online retail behemoth Amazon declared its intention to eliminate more than 18,000 positions from its workers, blaming “the uncertain economy” and the fact that it had “hired swiftly” during the pandemic.
Microsoft’s job-slashing plan is the largest among recent layoffs
The job-cutting initiative by Microsoft is the most significant among recent layoffs that have hit the formerly unstoppable US tech sector, including at titans like Facebook-owned Meta. CEO Andy Jassy addressed staff that some of the Amazon layoffs would occur in Europe and that the impacted employees would be notified beginning on January 18. In response to inflation, major platforms with an advertising-based economic model are suffering budget cuts from advertisers.