Microsoft could announce massive layoffs in the coming days. Sky News first reported on the possibility of the tech titan laying off a significant portion of its workforce, which Bloomberg later confirmed.
Sky estimated that the layoffs accounted for about 5% of the company’s 220,000-person workforce or approximately 11,000 employees.
Bloomberg said it couldn’t confirm the size of the layoffs, but they would affect “a number of engineering divisions”. They would be “significantly larger” than other rounds of job cuts implemented by Microsoft in the last year.
According to a Microsoft spokesperson, the company does not comment on rumors and speculation. If the 11,000 figure is correct, it would equal the 11,000 jobs cut by Meta last year and fall short of the 18,000 jobs Amazon expects to cut once its massive layoffs are completed.
In any case, Microsoft appears to be following a familiar path. During the first two years of the pandemic, the company’s profits skyrocketed, and it attempted to capitalize on the situation by going on a hiring spree, adding 50,000 employees during that time period.
However, Microsoft CEO Satya Nadella recently warned of impending belt-tightening due to worsening macroeconomic conditions.
“We’re focused on helping our customers do more with less while investing in long-term growth areas and managing our cost structure in a disciplined manner,” he said at the time to investors and analysts.
When Microsoft reports its second-quarter earnings on January 24th, he’ll most likely have more to say about the company’s current situation.
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