Microsoft is reportedly planning to lay off thousands of employees, joining other major technology companies in downsizing during a period of global economic downturn.
According to a report by Sky News, Microsoft is considering cutting a significant portion of its workforce, with plans to reduce about 5% of its staff or over 10,000 jobs out of its total 220,000 employees. The company is expected to announce the layoffs globally in the coming days.
Microsoft is planning to lay off a significant number of employees in several engineering divisions, according to a Bloomberg report. The report states that the job cuts will be larger than previous rounds of layoffs at the company in the past year, which affected less than 1% of its workforce.
My Self or Bgs Raw could not independently verify the report.
The technology industry is experiencing significant job cuts, and Microsoft has announced that it will be reducing its workforce in response to the current economic challenges.
Recently, multiple tech companies have announced plans to reduce their workforce due to economic challenges. Amazon disclosed plans to cut 18,000 jobs globally, representing about 6% of its workforce. In November, Facebook announced it would be cutting over 11,000 jobs, a reduction of about 13% of its team. Similarly, Twitter laid off about 3,700 employees, approximately half of its workforce, in the same month.
Microsoft is scheduled to release its Q2 financial results for the fiscal year 2023 on January 24, 2023, after the market closes. According to Sky News, the announcement of the layoffs is expected to be made prior to the update from Satya Nadella, CEO of Microsoft, on the company's financial performance next week.
Microsoft's net income for the first quarter of the year was $17.6 billion, a decrease of 14% compared to the same period the previous year. However, the company's first-quarter revenue was $50.1 billion, an increase of 11% from the previous year.