Lean times for Big Tech. mass layoffs, which characterized part of 2022, it seems that they will also make an appearance this year. Tech giant Microsoft is preparing to launch a historic cut, according to Reuters.
The company behind products and services like Windows, Office and Azure could launch a far-reaching restructuring plan. All divisions would be affected by staff reductions and internal reorganizations.
Up to 10,000 fewer employees
According to Sky News, the layoffs will start this week and will number in the thousands. The company, which employs some 220,000 people, will eliminate approximately 5% of its staffwhich translates into some 11,000 fewer jobs.
If this movement is carried out, Microsoft would enter the podium of the companies with the most aggressive personnel cuts in the last two years. Amazon has announced the layoff of 18,000 employees, Meta of 11,000, Salesforce of 8,000 and Twitter more than 4,000.
This would not be the first time in recent times that the Redmond giant has shrunk. In October, according to Axios, the company laid off 1,000 people who worked in different divisions. Now, the cuts would affect all areas of the company.
With PC sales plummeting, the cloud business slowing, and global recession forecasts, Microsoft, like many other big companies, may not be experiencing its best moment.
Data from Yahoo! Finance indicate that the company’s shares have fallen by 62.30% over the past year. The company’s projections, meanwhile, indicate that Azure, one of the pillars of Microsoft, reduced its growth by 35% in the first fiscal quarter of 2023 and that it will fall again in the current period.
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