Microsoft to eliminate thousands of positions across all departments

By Garima Soni  | Date: 2023-01-18

Microsoft to eliminate thousands of positions across all departments

Microsoft Corporation is reportedly planning to remove thousands of employees, some of whom are believed to be in the engineering and human resources departments.

According to sources, the company intends to eliminate 11,000 jobs or around 5% of the workforce.

The anticipated job losses would be the most recent in the American technology sector, where businesses like Amazon Inc. and Meta Platforms Inc. have announced retrenchment plans in response to sluggish demand and a worsened prognosis for the world economy.

Notably, the action by Microsoft might be a sign that employment losses in the tech industry will persist shortly.

Expert analysts state that from a broad viewpoint, another looming round of layoffs at Microsoft implied that the situation does not seem to improve any time soon, in fact, will probably continue to deteriorate.

On Wednesday, i.e., 18th January, sources familiar with the situation asserted that the company plans to make job cuts in several engineering departments, and also revealed that Microsoft may reduce its recruiting personnel by up to one-third of its strength.

As of June 30, the corporation employed 2,21,000 full-time employees, including 1,22,000 in the US and 99,000 abroad, according to documents. However, a few roles had been cut back, it had stated in July of last year. In October, Microsoft fired less than 1,000 workers from several divisions.

After three-quarters of a decline in the personal computer market that harmed Windows and other products, Microsoft is under pressure to sustain growth rates at its cloud business Azure. Besides, Open AI’s ChatGPT is likely to give hope to the tech behemoth for the forthcoming decade.

The giant saw a slight increase in its share price in the late afternoon on Tuesday i.e., 17th January, and is expected to release its quarterly results on January 24.

Source credit:

https://www.reuters.com/technology/microsoft-cut-thousands-jobs-sky-news-2023-01-17/

About Author

Garima Soni     aeresearch.net

Garima Soni

Despite starting her career in science, Garima always had a zeal for writing. She started out her writer journey as a freelancer which eventually turned into a full-time job. Now as an upcoming MBA professional, Garima pens down articles for BonafideNews and several o...

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