As the company prepares to release its quarterly financial results next week, rumors have surfaced that Microsoft plans to lay off a significant number of its employees. Today, it is expected that more than five percent of the company’s workforce would be sent off. Approximately 11,000 of the firm’s workers could be affected by these layoffs, which the company claims it is doing due to the worsening economic outlook.
This time around, layoffs will affect employees in the company’s human resources and engineering departments. The news of these potential layoffs comes just a few short weeks after Microsoft CEO Satya Nadella issued a warning about the challenges that the IT industry would face over the next two years. Nadella said efficiency is key in the computer industry and that Microsoft is not “immune to the global trends” in a CNBC interview.
In light of the current economic crisis, it appears that Microsoft is focusing on becoming “more efficient.” It’s hardly surprising, given that many companies, including Amazon, Vimeo, internet giant Salesforce, and cryptocurrency exchange Huobi, have announced massive layoffs in the first three weeks of 2023. As of the first week of January, only Amazon alone had laid off more than 18,000 workers.
We reported earlier this week that Microsoft is enforcing an unlimited vacation policy, a move that has been widely criticized by some. It appears that the company took the name a little too seriously since reports have surfaced within days suggesting that a sizable portion of the workforce may be entitled to “unlimited time off.”
With approximately 221,000 workers and a market worth in the top five in the United States, Microsoft is clearly not a small company. But this isn’t the first time we’ve heard anything like this, as in October 2022, Microsoft laid off almost a thousand workers, or around 1% of the company’s total staff.
It is only a matter of time before the impacts of the worsening global economic situation become apparent, and it remains to be seen how businesses respond. There have been nearly 30,000 layoffs in the technology sector (according to the layoff tracker) so far this year in just 18 days, and with Microsoft’s involvement, that number might rise dramatically.
Source: Sky News