In response to Tuesday’s media reports, Microsoft plans to eliminate hundreds of jobs, with some positions to be eliminated in human resources and engineering departments.
The expected layoffs can be the newest within the US tech sector, where firms including Amazon and Meta Platforms announced cutbacks in response to slowing demand and a worsening global economic outlook.
Microsoft’s move may indicate that the tech sector may proceed to lose jobs.
“Taking a look at the larger picture, one other pending round of layoffs at Microsoft suggests the environment isn’t improving and is prone to proceed to worsen,” said Morningstar analyst Dan Romanoff.
UK broadcaster reported Sky Newsciting sources that Microsoft plans to cut about 5% of its workforce, or about 11,000 positions.
The corporate plans to cut jobs in several engineering departments on Wednesday, reported Bloomberg Newsin accordance with an individual conversant in the matter, while The informant reported that Microsoft could reduce staff recruitment by as much as a 3rd.
In response to a Bloomberg report, the cuts will be much larger than in other rounds last yr.
Microsoft declined to comment on the reports.
As of June 30, the corporate had 221,000 full-time employees, including 122,000 in america and 99,000 worldwide.
Microsoft is under pressure to take care of its pace of growth in its Azure cloud after several quarters of slowdown within the PC market that hurt sales of Windows and devices.
Last July, he said a small variety of roles had been eliminated. In October, news outlet Axios reported that Microsoft had laid off fewer than 1,000 employees in several departments.
Shares of Microsoft, which is predicted to report quarterly results on January 24, were barely higher in late afternoon trading.