(MSFT) According to multiple news reports, thousands of job cuts could be announced on Wednesday, which could become the latest Institute of Technology to do Destroy its crew Because the world economy is sluggish.
Sky News, without naming sources, reported that the layoffs would affect about 5% of the company’s workforce. Microsoft employs 221,000 people worldwide, including 122,000 in the United States.
The software company plans to cut jobs in several engineering divisions Bloomberg, It quoted a person familiar with the matter. The Wall Street Journal, citing a person familiar with the matter, said the layoffs could be announced as soon as Wednesday. Microsoft declined to comment on the reports.
Many tech companies have made deep cuts to their workforces since the start of the year as inflation weighs on consumer spending and rising interest rates strain finances. Demand for digital services has decreased during the pandemic as people return to their offline lives.
(AMZN) It announced plans to lay off 18,000 people and Salesforce said it would cut 10% of its workforce. Facebook
(FB) Parent Meta also recently announced 11,000 job cuts, the largest in the company’s history. In October, Axios reported that Microsoft was laying off fewer than 1,000 employees across multiple divisions.
Tech CEOs, from Meta’s Mark Zuckerberg to Salesforce’s Marc Benioff, have blamed themselves for over-hiring early in the pandemic and misreading how demand for their products would slow once Covid-19 restrictions eased.
Although the overall labor market is tight, layoffs in the tech sector have increased at an alarming rate. A recent report from outplacement firm Challenger, Gray & Christmas found that tech layoffs are up 649% in 2022 compared to the previous year, compared to just 13% of job cuts in the economy as a whole over the same period.
Microsoft will report second-quarter earnings on January 24. The software company’s Azure cloud computing business posted revenue growth in the three months to September as sales in its personal computer division fell slightly.