Microsoft may start layoffs today: report – Flying Journals

Microsoft may start layoffs today: report

Microsoft could announce layoffs in its engineering division as early as Wednesday.

San Francisco:

Microsoft is preparing to cut more positions from its global workforce as the tech giant continues to lay off workers to weather a tough economy, CNBC reported on Tuesday.

The computer industry giant could announce layoffs in its engineering department as early as Wednesday, according to Bloomberg.

A Microsoft spokesman told AFP that the company does not comment on so-called “rumours”.

The Washington state-based company, which industry trackers say has more than 220,000 employees, cut jobs twice last year.

The new layoff announcement comes a week before Microsoft reports earnings for the final three months of last year.

“Over the past few weeks, we’ve seen significant layoffs at both Salesforce and Amazon,” Wedbush analyst Dan Ives said in a note to investors.

Ives told investors that Wedbush expects another 5% to 10% layoffs across the technology industry.

“Many of these companies spend like rock stars in the 1980s and now need to rein in spending before (macroeconomic conditions) soften,” Ives wrote.

Amazon announced in early January that it planned to cut more than 18,000 jobs, citing “economic uncertainty” and the fact that the online retail giant was “hiring quickly” during the pandemic.

The layoffs are the largest in recent memory and affect the once impenetrable U.S. tech industry, including giants such as Facebook owner Meta.

In a statement to employees, Amazon CEO Andy Jassy said some of the layoffs will be made in Europe, adding that affected employees will be notified starting Wednesday, January 18.

Major platforms with ad-based business models are facing budget cuts from advertisers, who are cutting spending in the face of inflation.

Meta announced in November that it was cutting 11,000 jobs, about 13% of its workforce. At the end of August, Snapchat laid off about 20% of its workforce, or about 1,200 people.

In early January, IT group Salesforce announced that it would cut about 10% of its workforce, or nearly 8,000 people.

Twitter was acquired by billionaire Elon Musk in October, who immediately laid off about half of the social media platform’s 7,500 employees.

An unknown number more resigned in protest of his policy changes.

(Aside from the title, this story is unedited by NDTV staff and published via a syndicated feed.)

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