Tech Blues: Microsoft to cut thousands of jobs across divisions –Reports

*Microsoft Corporation’s proposed move could indicate that the technology sector of the global economy may continue to shed jobs, 3,500 of which are in Ireland, say reports

Gbenga Kayode | ConsumerConnect

Microsoft Corporation (MSFT.O), a United States-based software giant and one of the global technology giants, plans to cut thousands of jobs with some roles expected to be eliminated in human resources and engineering divisions.

Media reports Tuesday, January 17, 2023, indicated the expected layoffs would be the latest in the US technology sector, where companies, including Amazon.com Incorporated (AMZN.O) and Meta Platforms Inc. (META.O) have announced retrenchment exercises in response to slowing demand and a worsening global economic outlook.

Microsoft’s move could indicate that the technology sector may continue to cut jobs, 3,500 of which are in Ireland, according to reports.

Commenting on the development, Morningstar analyst Dan Romanoff said: “From a big picture perspective, another pending round of layoffs at Microsoft suggests the environment is not improving, and likely continues to worsen.”

United Kingdom (UK) broadcaster Sky News also cited sources, that Microsoft plans to cut about 5 percent of its workforce, or about 11,000 roles.

Similarly, the company plans to cut jobs in a number of engineering divisions Wednesday, reports Bloomberg, quoting a person familiar with the matter, while Insider reported that Microsoft could cut recruiting staff by as much as one-third in the next move.

The cuts will be “significantly larger than other rounds” in the past year, report said.

However, Microsoft declined to comment on the reports, sources said.

It is recalled the company had 221,000 full-time employees, including 122,000 in the United States and 99,000 internationally, as of June 30, 2022, according to filings.

Pressure to maintain growth rates

ConsumerConnect also gathered Microsoft is under pressure to maintain growth rates, especially at the company’s Cloud Unit Azure, after several quarters of downturn in the Personal Computer (PC) market hurt Windows and devices sales globally.

The technology firm, July last year, had reportedly said that a small number of roles had been eliminated.

In October, news site Axios as also reported that Microsoft had laid off under 1,000 employees across several divisions.

Shares of Microsoft, which is set to report quarterly results January 24, 2023, were marginally higher in late afternoon trading, according to report.

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