Microsoft Is Allegedly Planning To lay off over 10,000 Employees

According to a report in the British newspaper Sky News, the computer giant Microsoft, which owns Xbox, one of the top three console producers on the industry, plans to let rid of roughly 5% of its workforce. Given that Microsoft employs about 220,000 people, it translates to an almost 11,000 workers. 

According to Sky News, although that particular sum could not be validated, corresponding analysts wouldn’t be shocked if it were considerably greater. It’s possible that we’ll learn more about this mass layoff and its specifics when the company announces its financial condition in a financial results on January 24 to its common shareholders.

Over the past few weeks, major layoffs have been implemented by numerous other significant software and internet organisations. Recent layoffs at Amazon affected 18,000 workers, or around 6% of the company’s workforce. According to Sky News, Salesforce slashed over 8,000 workers while Meta, the parent company of Facebook, eliminated about 11,000 jobs. In the case of Microsoft, the corporation’s continually problematic prospective takeover of Activision Blizzard, publisher of the Call of Duty franchise, may have contributed to how much the company was compelled to make cost reductions.

Although the particular cause of these cutbacks is unknown, it is likely related to economic concerns outside of the tech and gaming industries. The market share value of Microsoft has been steadily declining during the whole year after 2022; it began the year as the roughly $300 and is presently at about $240.

According to Morningstar analyst Dan Romanoff, “from a broad viewpoint, another looming round of layoffs at Microsoft implies the situation is not improving, and probably continues to worsen.”

According to a source familiar with the situation, the company plans to make job cuts in several engineering departments on Wednesday. Insider also revealed that Microsoft may reduce its recruiting personnel by up to one-third. 

According to the Bloomberg article, the cuts will be far deeper than in prior rounds. 

Microsoft chose not to respond to the rumours.

After the private computer industry suffered for several quarters, Microsoft is under pressure to keep Azure’s growth rates up. This is because Windows and gadget sales were negatively impacted. 

A few roles had been cut back, it had stated in July of last year. Axios, a news outlet, reported in October that Microsoft has fired less than 1,000 workers from several divisions. 

Microsoft’s stock was just a little bit higher in late afternoon session; the company is scheduled to release its quarter earnings on January 24.

Microsoft CEO Sayta Nadella told analysts, “In this climate, we’re focused on helping our customers do more with less, while investing in secular growth areas and managing our cost structure in a disciplined way. 

Next Tuesday, Microsoft will report its financial results for the second quarter. Over the past year, the company’s value has decreased by much more over 20%.