Microsoft Corporation Layoff: IT giant fires nearly 1,000 staff; over 32,000 jobs cut by Big Tech firms till July, says report
There are many technology companies, including Meta Platforms Inc, Twitter Inc, and Snap Inc, that have cut jobs this year.
Microsoft job cuts: Microsoft Corporation, a teach giant has laid off 1,000 employees across several divisions this week, Axios reported on Tuesday, citing a source, making it the latest U.S. technology company to cut jobs and break hiring amid a global economic slowdown.
A Microsoft spokesperson was quoted by Reuters as saying: "Like all companies, we evaluate our business priorities regularly and make structural adjustments accordingly. We will continue to invest in our business and hire in key growth areas in the year ahead."
Microsfot had said in July that a small number of roles had been eliminated and that it would increase its headcount down the line.
There are many technology companies, including Meta Platforms Inc, Twitter Inc, and Snap Inc, that have cut jobs this year.
They have put break on hiring in recent months. The reason for the break is global economic growth which is slowing due to higher interest rates, rising inflation and an energy crisis in Europe.
However, the software giant did not give a number for the latest round of layoffs.
Another report earlier claimed that more than 32,000 workers in the US tech industry across Big Tech firms, including Microsoft and Meta had been sacked off in mass job cuts till late July.
This layoff has affected less than 1% of Microsoft's total workforce of around 221,000 as of June 30.
Microsoft layoff in July
Microsoft has early laid off 1,800 employees in July and asked around 200 more employees to leave.
According to posts on Microsoft-owned LinkedIn, the recent layoffs have also impacted contracted recruiters across several locations.
Why Microsoft lays off employees
Microsoft is continuously facing challenges, it suffered the slowest earnings growth in the three months through June, hurt by a sharp slowdown in its cloud business, declining videogame sales and the effects of a strong dollar.
Microsoft Chief Financial Officer Amy Hood said the company would “slow the rate of hiring to focus on key growth areas.”
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.