January 31, 2023

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Microsoft will cut thousands of jobs across divisions – reports

January 17 (Reuters) – Microsoft Corporation (MSFT.O) It intends to cut thousands of jobs with some roles expected to be cut in human resources and engineering departments, according to media reports on Tuesday.

The expected layoffs will be the latest in the US tech sector, where companies including Amazon.com Inc (AMZN.O) and Meta Platforms Inc (META.O) They announced spending cuts in response to slowing demand and a worsening global economic outlook.

Microsoft’s move may indicate that the technology sector may continue to shed jobs.

“From a big picture perspective, another pending round of layoffs at Microsoft suggests that the environment is not improving, and will likely continue to worsen,” Morningstar analyst Dan Romanov said.

British broadcaster Sky News mentionedciting sources, that Microsoft plans to cut about 5% of its workforce, or about 11,000 jobs.

The company plans to cut jobs in a number of engineering divisions on Wednesday, Bloomberg News reported, according to a person familiar with the matter, while Insider mentioned That Microsoft could cut staffing by a third.

The Bloomberg report said the cuts will be much larger than in other rounds in the past year.

Microsoft declined to comment on the reports.

The company had 221,000 full-time employees, including 122,000 in the United States and 99,000 internationally, as of June 30, according to filings.

Microsoft is under pressure to maintain growth rates in its Azure cloud unit, after several quarters of a downturn in the PC market that hurt Windows and hardware sales.

She had said in July last year that a small number of roles had been cancelled. In October, news site Axios reported that Microsoft had laid off fewer than 1,000 employees across several divisions.

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Shares of Microsoft, which is set to report quarterly results on Jan. 24, were marginally higher in late afternoon trading.

Additional reporting by Yuvraj Malik in Bengaluru; Editing by Magu Samuel and Sriraj Kaluvella

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