Microsoft is the latest tech giant after Meta and Amazon to go for mass layoffs amid a poor economic outlook throughout the world. It has now been reported that the Redmond-based company will be reducing the size of their workforce by 5%, which comes to around 11,000 jobs.
According to Bloomberg, the announcement of layoffs in Microsoft’s technical departments will be announced tomorrow. According to reports, the job losses will be “significantly larger” than the 1% reduction in Microsoft’s staff last year. Positions in consultancy and partner and customer solutions were affected by the prior employment losses.
This time around, some members of the company’s human resources and engineering divisions are set to lose their jobs.
The layoffs occur just a few weeks after Microsoft CEO Satya Nadella issued a warning about the two years of difficulties the IT sector would face. In a CNBC interview, Nadella acknowledged that Microsoft is not “immune to the global changes” and stressed the importance of efficiency in the tech industry.
Amid the pressures in the tech industry, it was reported earlier this week that both Microsoft and Meta were vacating some of their office spaces in Seattle.
As per company filings, Microsoft has 221,000 full-time employees, including 122,000 in the United States and 99,000 internationally, as of June 30, 2022.
According to a Reuters report, the company is under pressure to maintain growth rates at its cloud unit Azure, after several quarters of the downturn in the personal computer market hurt Windows and device sales. Microsoft shares have plunged over 23% in the past year and closed at $240.35 in New York on Tuesday.
However, the company has waited longer than many other tech giants to significantly slash staff. Cloud rival Amazon is cutting more than 18,000 positions in the biggest layoffs in history. Meta announced significant job cuts last fall, and Twitter Inc has reduced about half its workforce. Corporate cloud-software maker Salesforce laid off around 10% of its staff earlier this month.