Microsoft lays off a portion of its workforce as part of a ‘realignment’

Published by
Peter Kavinsky

Microsoft today became the latest Big Tech company to cut jobs during a period of mounting economic uncertainty. Bloomberg reports that the Redmond firm is “realigning business groups and roles” after the close of its fiscal year (on June 30), even as the company intends to grow its headcount in the coming months.

The layoffs reportedly affect less than 1% of Microsoft’s 180,000-person workforce and follow no clear pattern with respect to geography or product division, touching on teams including customer and partner solutions and consulting. They come after Microsoft slowed hiring in the Windows, Teams, and Office groups while assuring that recruitment hadn’t been affected by industry headwinds.

“Today we had a small number of role eliminations. Like all companies, we evaluate our business priorities on a regular basis, and make structural adjustments accordingly,” Microsoft told Bloomberg in an emailed statement. “We will continue to invest in our business and grow headcount overall in the year ahead.”

Microsoft reported strong earnings in Q3, with a 26% year-over-year increase in cloud revenue and overall revenue of $49.4 billion. But in early June, the company revised its Q4 revenue and earnings guidance downward, citing the impact of foreign exchange fluctuations.

Bloomberg notes that Microsoft has in recent years typically announced job cuts shortly after the July 4 holiday in the U.S. as it makes changes for the new fiscal period.

Layoffs within the tech sector have accelerated over the past few months as investors, fearful of a recession, pull back. Startups, particularly those in capital-intensive businesses like delivery, events, and fintech, have bore the brunt of the impact. But as the unfavorable conditions persist, there’s been a knock-on effect. Oracle, for instance, is said to be considering a $1 billion cost-cutting initiative that would include thousands of layoffs.

Beyond Microsoft and Oracle, Twitter let go a third of its recruiting team last week. Tesla has been laying off hundreds of employees over the past month. And groups at Meta are bracing for firings after managers at the company were reportedly told to “move to exit” poor performers. Meta, which CEO Mark Zuckerberg perceives as in the midst of “one of the worst downturns … in recent history,” previously said that it would slash its target number for new engineer hires this year by about 30%.

Nvidia, Lyft, Snap, Uber, Spotify, Intel, and Salesforce are among the other publicly-traded tech companies that slowed hiring this spring. So far, Google, IBM, and Amazon haven’t made similar moves.

Source: TechCrunch

Peter Kavinsky

Peter Kavinsky is the Executive Editor at cablefreetv.org

Share
Published by
Peter Kavinsky

Recent Posts

  • News

We invite a dialogue about the truth to build: De Roo | hour 20

In dialogue with Hora20 from Caracol Radio, Father François de Roux referred to the results…

4 mins ago
  • News

US and Taiwan start talks on trade and investment agreement | Economy

The United States and Taiwan announced on Wednesday that they would begin negotiations for a…

6 mins ago
  • News

Liz Cheney – LIVE: Biden calls Wyoming congressman after Trump defeat and attacks

Liz Cheney concedes in her primary run US President Joe Biden contacted Liz Cheney on…

7 mins ago
  • News

GALATASARAY TRANSFER NEWS: Defense line is solid! Andreas Hanche-Olsen next to Victor Nelsson

For Olsen's transfer Galatasaray It is known that Norwegian Fredrik Midtsjö, who wears the jersey,…

8 mins ago
  • News

Pay attention to compensation for absenteeism! – Social Security News

The Labor Law regulates the circumstances in which the employers can dismiss workers who are…

9 mins ago
  • News

Police say fatal explosion at Kabul mosque

Khalid Zadran, a spokesman for Kabul's police chief, told CNN that the blast resulted in…

18 mins ago