NEW YORK (VINnews) — The Microsoft corporation is apparently seeking to lay off 11,000 employees this week, according to media reports Tuesday. The company is looking to cut 5% of its 220,000 workforce, following a trend in the technology arena after Twitter, Amazon and Facebook parent Meta significantly trimmed their workforces.
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Microsoft is expected to cut thousands of jobs in human resources and engineering divisions Wednesday. The company is following the other tech giants that have announced retrenchment exercises in response to slowing demand and a worsening global economic outlook. Amazon recently announced that it will lay off 18,000 workers in the near future. Meta has said that it will be releasing 11,000 workers from its payroll. Recently cloud software provider Salesforce also announced a cut of 8,000 jobs.
The layoffs come just weeks after Microsoft CEO Satya Nadella warned that the computer industry would face two years of turmoil. In an interview with CNBC, Nadella recognised that Microsoft was not “immune to global developments” and emphasised the need for efficiency in digital organisations.
After many quarters of slowdown in the PC industry impacted Windows and device sales, Microsoft is under pressure to sustain growth rates at its cloud business Azure. The firm announced in July last year that a small number of positions had been cut. According to news site Axios, Microsoft laid off less than 1,000 employees across numerous businesses in October last year.
The company, which has placed huge bets on the growth of cloud computing and now has a market value of $1.78tn, is due to report second-quarter earnings next week.
Responding to an inquiry from Sky News, a spokesman said that Microsoft “does not comment on rumor or speculation”.
The news of Microsoft laying off its employees comes after reports that the tech giant would not renew its lease at the 26-story City Center Plaza in Bellevue, US, vacating the office amid a tech slowdown with massive layoffs. According to recent company statements, the software giant had 221,000 full-time employees, including 122,000 in the United States and 99,000 internationally.
Responding to an inquiry from Sky News, a spokesman said Microsoft “does not comment on rumor or speculation”.
Biden’s white collar recession. The american promise that an education pays off is nearly gone . Between this and inlfation who needs college. Low income service workers on WIC are better off. They get free eggs at whatever exorbitant price it is (Also Biden’s incompetency why eggs are so much). They also got huge wage increases and top job secuirty. The educated middle class is eroding. I hope all the independent voting suburban moms struggling to put their kids thru college see that