Amidst global economic slowdown, United States software giant, Microsoft, is planning to cut thousands of jobs.
About 11,000 workers are expected to be laid off in the workforce downsize.
Microsoft employs over 220,000 people. The technology company targets 5% cut for the exercise, according to Sky News.
“That figure could not be verified on Tuesday evening, and one analyst suggested that Wall Street would be surprised if the figure was not higher than that.
“It was also unclear whether or how many UK-based positions might be affected.
“The company, which has placed huge bets on the growth of cloud computing and now has a market value of $1.78 trillion, is due to report second-quarter earnings next week.
If finalised, an announcement about headcount reductions is likely to come before Satya Nadella, Microsoft’s chairman and chief executive, updates investors on its financial performance on January 24,” the report stated.
In recent weeks, a slew of large tech companies have wielded the axe, with Amazon disclosing plans this month to cut 18,000 jobs, or about 6% of its workforce.
Salesforce, the cloud software provider, said it would cut 8,000 jobs, while Meta, the owner of Facebook, is reducing its workforce by approximately 11,000 roles.
Big technology companies have been forced to respond to signs of a global economic slowdown, with many having recruited tens of thousands of additional employees during the pandemic.
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Under the ownership of Elon Musk, Twitter has also moved to cut thousands of jobs, while 6,000 have also gone at the personal computer manufacturer HP.
Microsoft warned in October of a slowdown in its cloud computing business, an acknowledgement that major corporate customers were re-evaluating spending in response to economic challenges.
“In a world facing increasing headwinds, digital technology is the ultimate tailwind,” Nadella said in October.
“In this environment, 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.”
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