Microsoft set to announce big layoffs, according to multiple reports

Interesting 18:30 18.01.2023
 

Microsoft (MSFT) could announce thousands of job cuts on Wednesday, according to multiple news reports, potentially becoming the latest tech company to cull its workforce as the global economy slows.

Sky News, without naming sources, reported the layoffs would affect roughly 5% of the company’s workforce. Microsoft employs 221,000 people around the world, including 122,000 in the United States.

The software company plans to cut jobs in a number of engineering divisions, according to Bloomberg, which cited a person familiar with the matter. The Wall Street Journal, also citing a person familiar with the matter, said the layoffs could be announced as soon as Wednesday. Microsoft declined to comment on the reports.

Speaking at the World Economic Forum (WEF) in Davos, Switzerland, on Wednesday, Microsoft CEO Satya Nadella said that the company was not immune to a weaker global economy.

“No one can defy gravity and gravity here is inflation-adjusted economic growth,” he told WEF founder Klaus Schwab in a livestreamed discussion.

Multiple tech companies have made deep cuts to their workforces since the start of the year, as inflation weighs on consumer spending and rising interest rates squeeze funding. The demand for digital services during the pandemic has also waned as people return to their offline lives.

Nadella said that there would be a “normalization” of demand following rapid growth during the pandemic, which would require the tech industry to be more efficient.

“We will have to do more with less,” he added.

Amazon (AMZN) announced that it plans to lay off 18,000 people and Salesforce said it is cutting 10% of its staff. Facebook (FB) parent Meta also recently announced 11,000 job cuts, the largest in the company’s history. In October, Axios reported that Microsoft had laid off under 1,000 employees across several divisions.

Tech CEOs, from Meta’s Mark Zuckerberg to Salesforce’s Marc Benioff, have blamed themselves for over-hiring early on in the pandemic and misreading how a surge in demand for their products would cool once Covid-19 restrictions eased.

While the overall labor market remains tight, layoffs in the tech sector have mounted at a staggering pace. A recent report from outplacement firm Challenger, Gray & Christmas found tech layoffs were up 649% in 2022 compared to the previous year, versus just a 13% uptick in job cuts in the overall economy during the same period.

Microsoft will announce second quarter earnings on January 24. The software company’s Azure cloud computing business drove revenue growth over the three months through September, as sales in its personal computing division decreased slightly.

British ambassador congratulates Azerbaijan on Independence Day - VIDEO

News line

Israel says it controls 75% of Gaza-Egypt buffer zone
20:20 29.05.2024
Volcano in Iceland erupts again
Volcano in Iceland erupts again
19:40 29.05.2024
Ukrainian Army soldier of Azerbaijani descent goes missing
19:20 29.05.2024
Saudi Arabia expels Iranian media team sent for Hajj coverage
Saudi Arabia expels Iranian media team sent for Hajj coverage
19:00 29.05.2024
Azerbaijan, Iran agree on distribution of Araz river water resources
18:50 29.05.2024
Türkiye’s Erdoğan says ‘spirit of UN dead in Gaza’
18:32 29.05.2024
Israel hosts event dedicated to Azerbaijan's Independence Day
18:15 29.05.2024
Azerbaijan selects faculty deans for Karabakh University
17:50 29.05.2024
German Ambassador Observes Women Deminers in Action during Aghdam Visit - PHOTOS
17:35 29.05.2024
Azerbaijan Defense Ministry’s leadership is on a working visit to Türkiye
17:28 29.05.2024
Azerbaijani president's aide discusses regional situation with Turkish ambassador
17:15 29.05.2024
Azerbaijani FM embarks on official visit to Pakistan
17:00 29.05.2024
Ukrainian Army soldier of Azerbaijani descent goes missing
16:57 29.05.2024
Greens ‘will not back von der Leyen’ for re-election if she does deal with far right
16:40 29.05.2024
Picket staged at US Embassy in Moldova in anticipation of Blinken's visit
Picket staged at US Embassy in Moldova in anticipation of Blinken's visit
16:25 29.05.2024
Police search European parliament over possible Russian interference, prosecutors say
16:13 29.05.2024
David Karapetyan appointed Secretary General of Armenian Foreign Ministry
15:56 29.05.2024
Azerbaijani Prime Minister may visit Belarus in coming days
15:25 29.05.2024
Azerbaijan weather forecast for May 30
Azerbaijan weather forecast for May 30
15:00 29.05.2024
Spain officially pulls its ambassador from Argentina
Spain officially pulls its ambassador from Argentina
14:35 29.05.2024
Farid Shafiyev says Armenia-Azerbaijan peace process 'in a good track'
14:25 29.05.2024
Vladanka Andreeva notes existing opportunity to expand support for Azerbaijan's mine action efforts
14:16 29.05.2024
Algerian President congratulates Azerbaijani head of state
Algerian President congratulates Azerbaijani head of state
14:01 29.05.2024
President of Lithuania congratulates Azerbaijani President Ilham Aliyev
13:31 29.05.2024
Borrell says EU will create network of defense agreements with third countries
Borrell says EU will create network of defense agreements with third countries
13:05 29.05.2024
Volunteer registration for COP29 begins
12:42 29.05.2024
North Korea drops trash balloons on the South
North Korea drops trash balloons on the South
12:10 29.05.2024
Armenian PM Pashinyan considers signing of peace agreement with Azerbaijan soon possible
11:57 29.05.2024
Israel's operation in Rafah doesn't cross US red lines - White House
11:46 29.05.2024
Amnesty International Report Exposes Surge in Executions Across the Middle East
Amnesty International Report Exposes Surge in Executions Across the Middle East
11:30 29.05.2024
Delhi temperature hits 49.9C as India’s capital records hottest day
Delhi temperature hits 49.9C as India’s capital records hottest day
11:16 29.05.2024
Ban on entry of Russians into Norway comes into force
Ban on entry of Russians into Norway comes into force
11:02 29.05.2024
Nikki Haley Blames Iran, Russia, China for Hamas Attack
10:50 29.05.2024
Azerbaijani oil price exceeds $85
Azerbaijani oil price exceeds $85
10:39 29.05.2024
President Ilham Aliyev receives Co-Founder and Chairman of CVC Capital Partners
10:31 29.05.2024
Japan unveils world's first wooden satellite
10:22 29.05.2024
Archbishop Galstanyan, his supporters marching towards Armenian Interior Ministry building
10:10 29.05.2024
Visit of Commission heads of French Polynesia Parliament to Azerbaijan kicks off
09:58 29.05.2024
Israel completely shuts down communication, Internet in Rafah
09:46 29.05.2024
Bus crash in Pakistan claims 28 lives, dozens injured
Bus crash in Pakistan claims 28 lives, dozens injured
09:33 29.05.2024
Hamısı