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Microsoft (MSFT) Might Cut 11,000 Jobs Amid Market Turmoil
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Microsoft (MSFT - Free Report) is reportedly ready to cut more positions from its global workforce as tech giants continue paring headcount to ride out rough economic conditions. The company is expected to cut 11,000 jobs in a fresh round of mass layoffs, which amounts to around 5% of the workforce being fired.
As reported by Bloomberg and Reuters, the engineering department and human resources department are expected to be impacted the most. An official number for job cuts has not been provided by Microsoft.
The cuts also come just weeks after Microsoft CEO Satya Nadella warned of two years of challenges ahead for the tech industry.
In October, it was reported that this Zacks Rank #4 (Sell) company laid off less than 1,000 employees across several divisions. Those cuts impacted less than 1% of the software giant’s workforce of more than 200,000.
Microsoft & Other Tech Giants to Cut Costs and Pause Hiring
Many top tech companies have been announcing layoffs as they feel the effects of inflation, rising interest rates and currency headwinds.
Unity Software (U - Free Report) , a provider of tools for creating videogames and other applications, is laying off more than 200 employees, making it the latest technology company to implement staff cuts amid mounting recession fears. The company had last disclosed layoffs in June, when it cut around 225 jobs. At that time, the company said that it was looking to better match the size of its staff with its needs.
Meta Platform (META - Free Report) announced in November the loss of 11,000 jobs or about 13% of its workforce. The announcement came after the company reported dismal results for third-quarter 2022. Meta is limiting its hiring of employees to cut costs due to weak revenue forecast. Facebook's parent company is pausing or slowing down hiring for most mid-to-senior level positions after announcing a strategy to expand into the metaverse.
Recently, Amazon (AMZN - Free Report) announced its plans to let go more than 18,000 employees. Amazon’s move can be seen as rightsizing of workforce, as the company had hired rapidly and expanded aggressively during the pandemic when people were needed to shop online only amid the lockdowns and social distancing measures. Therefore, the headcount reduction strategy will help it in maintaining profitability.
Microsoft is slowing down the hiring for its Office, Windows, and Teams groups to better prepare itself for the coming fiscal year and contend with the current economic environment.
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Microsoft (MSFT) Might Cut 11,000 Jobs Amid Market Turmoil
Microsoft (MSFT - Free Report) is reportedly ready to cut more positions from its global workforce as tech giants continue paring headcount to ride out rough economic conditions. The company is expected to cut 11,000 jobs in a fresh round of mass layoffs, which amounts to around 5% of the workforce being fired.
As reported by Bloomberg and Reuters, the engineering department and human resources department are expected to be impacted the most. An official number for job cuts has not been provided by Microsoft.
The cuts also come just weeks after Microsoft CEO Satya Nadella warned of two years of challenges ahead for the tech industry.
In October, it was reported that this Zacks Rank #4 (Sell) company laid off less than 1,000 employees across several divisions. Those cuts impacted less than 1% of the software giant’s workforce of more than 200,000.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company had 221,000 full-time employees, including 122,000 in the United States and 99,000 internationally, as of Jun 30, according to filings.
Microsoft Corporation Price and Consensus
Microsoft Corporation price-consensus-chart | Microsoft Corporation Quote
Microsoft & Other Tech Giants to Cut Costs and Pause Hiring
Many top tech companies have been announcing layoffs as they feel the effects of inflation, rising interest rates and currency headwinds.
Unity Software (U - Free Report) , a provider of tools for creating videogames and other applications, is laying off more than 200 employees, making it the latest technology company to implement staff cuts amid mounting recession fears. The company had last disclosed layoffs in June, when it cut around 225 jobs. At that time, the company said that it was looking to better match the size of its staff with its needs.
Meta Platform (META - Free Report) announced in November the loss of 11,000 jobs or about 13% of its workforce. The announcement came after the company reported dismal results for third-quarter 2022. Meta is limiting its hiring of employees to cut costs due to weak revenue forecast. Facebook's parent company is pausing or slowing down hiring for most mid-to-senior level positions after announcing a strategy to expand into the metaverse.
Recently, Amazon (AMZN - Free Report) announced its plans to let go more than 18,000 employees. Amazon’s move can be seen as rightsizing of workforce, as the company had hired rapidly and expanded aggressively during the pandemic when people were needed to shop online only amid the lockdowns and social distancing measures. Therefore, the headcount reduction strategy will help it in maintaining profitability.
Microsoft is slowing down the hiring for its Office, Windows, and Teams groups to better prepare itself for the coming fiscal year and contend with the current economic environment.