According to Reuters, Microsoft Corporation (MSFT. O) plans to lay off thousands of employees, and some positions in human resources and engineering departments are expected to be canceled.
This round of layoffs will be the latest news in the US technology industry. Companies such as Amazon (AMZN. O) and Meta Platforms Inc (META. O) have announced layoffs to cope with the slowdown in demand and the deterioration of the global economic outlook. Microsoft’s move indicates that the technology industry may continue to lay off workers.
Morningstar analyst Dan Romanov said: “From the perspective of the overall situation, another round of layoffs that Microsoft is about to carry out indicates that the environment has not improved and may continue to deteriorate.” Sky News quoted the source as saying that Microsoft plans to cut about 5% of its staff, or about 11000 jobs. According to a person familiar with the matter, Bloomberg reported that the company plans to cut jobs in several engineering departments on Wednesday, while Insider reported that Microsoft may cut up to one third of its recruiters. Bloomberg reported that the reduction will be significantly greater than other rounds in the past year. Microsoft declined to comment on these reports.
According to the filing documents, as of June 30, the company had 221000 full-time employees, including 122000 in the United States and 99000 internationally. After the downturn of the PC market for several quarters affected the sales of Windows and devices, Microsoft is under pressure to maintain the growth rate of its cloud computing department Azure. Microsoft laid off less than 1000 employees in several departments last October.
Post time: Feb-13-2023