Multiple sources including bloomberg When sky news (opens in new tab), confirms that Microsoft will announce far-reaching layoffs across “many engineering departments.” Microsoft currently employs more than 221,000 people worldwide, and the latest cuts could cut that number down by 5%. If true, unfortunately more than 10,000 workers will lose their jobs.
An official announcement of the layoffs could come as early as Wednesday. Jobs at Microsoft have exploded during the pandemic as more people work from home and rely on the company’s software products and cloud services. In September 2022, CEO Satya Nadella confirmed that the company has employed 50,000 people between his 2020 and 2022. Now that the global economy is slowing and the threat of a prolonged recession is real, Microsoft is focused on cutting costs.
“There has been a lot of acceleration during the pandemic, but that demand has normalized to some extent,” he said. CNBC interview Early this month. “[There are] Clearly, there are so many challenges in the world today. As a global company, we cannot escape what is happening at the macro level. They also need to set their own operational focus to ensure expenses are aligned with revenue growth. ”
Note that Microsoft isn’t the only big tech company facing job cuts.For example, Facebook’s parent company Meta has eliminated 11,000 jobs In 2022, Amazon revealed it two weeks ago lay off 18,000 employees through 2023 (nearly double the value suggested by previous reports). Similarly, Salesforce announced this month that it will lay off his 10% of its workforce (about 8,000 employees).
According to Microsoft’s June 30 regulatory filings, 122,000 full-time employees are based in the United States. The rest of his 99,000 work in various offices around the world. Microsoft’s US employees will likely bear the brunt of the looming job cuts.
Microsoft will update investors on its financial results on January 24th. During Q1 FY2023 (opens in new tab)Microsoft reported an 11% increase in revenue to $50.1 billion (up 11% year-on-year) and a net profit of $17.6 billion (down 14% year-on-year).
“In a world facing more and more headwinds, digital technology is the ultimate tailwind,” Nadella said at the time. “We are focused on helping our customers do more with less, while investing in long-term growth areas and managing cost structures in a disciplined manner.”