Microsoft Is Preparing To Fire Thousands Of Employees Starting Today, According To A Report
According to reports in the media on Tuesday, Microsoft is preparing to eliminate additional roles from its global staff as computer companies continue to reduce headcount to weather challenging economic times.
According to Bloomberg News, the venerable company in the computer industry may announce layoffs in its engineering divisions as soon as Wednesday.
Microsoft declined to comment on the “rumor,” a spokeswoman for the business told AFP.
The Washington-based corporation, which according to industry watchers employs over 220,000 people, reduced its workforce twice last year.
A week before Microsoft is scheduled to release its earnings for the final three months of last year, a new layoff announcement would be made.
Wedbush analyst Dan Ives wrote in a note to clients, “Over the last few weeks we have seen considerable staff drop reduction from heavyweights Salesforce and Amazon.”
Ives informed investors that Wedbush anticipates additional personnel reductions in the tech sector of between 5 and 10 percent.
In light of softer (macro-economic conditions), many of these corporations need to rein in their expenditures after behaving like 1980s rock stars, according to Ives.
Early in January, the online retail behemoth Amazon declared its intention to eliminate more than 18,000 positions from its workers, blaming “the uncertain economy” and the fact that it had “hired swiftly” during the pandemic.
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The job-cutting initiative is the most significant among recent layoffs that have hit the formerly unstoppable US tech sector, including at titans like Facebook owner Meta.
CEO Andy Jassy addressed staff that some of the Amazon layoffs would occur in Europe and that the impacted employees would be notified beginning on January 18.
In response to inflation, major platforms with an advertising-based economic model are suffering budget cuts from advertisers.
The loss of 11,000 jobs, or around 13 percent of the employees, was revealed by Meta in November. At the end of August, Snapchat let go of 1,200 workers or nearly 20% of its workforce.
Salesforce, an IT company, also stated in early January that it would be laying off roughly 10% of its workforce, or just under 8,000 individuals.
Elon Musk, a billionaire, purchased Twitter in October, and subsequently, let go roughly half of its 7,500 staff members.
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