Representing 5% of the affected team, Microsoft’s layoff consideration is a part of the saving steps of the company due to the gloomy economic prospect in 2023.
Heaptalk, Jakarta — Microsoft, a giant technology company based in the United States, is reported to execute a massive layoff move for employees as the global economic slowdown. Previously, this corporation reduced 1,000 employees last October 2022. This complex regulation has impacted a 1% of the company’s team diminishment in total.
Regarding this further rightsizing step, thousands of Microsoft’s workforce are predicted to affect, including the human resources and technical divisions. Refers to the Sky News report, quoted by Reuters, this technology enterprise plans to cut around 5% of the team, or approximately 11,000 people. Meanwhile, Insider informed the company would lessen as much as a third of the recruiting staff.
Following the other layoff trend around companies of the technology sector in the United States, spanning Amazon and Meta, this layoff consideration is a part of the saving steps of the companies due to the gloomier economic prospect this year.
“From a big picture perspective, another pending round of layoffs at Microsoft suggests the environment is not improving and likely continues to worsen,” affirmed Morningstar analyst, Dan Romanoff, cited in Reuters (01/18).
As of June 30th, 2022 report, Microsoft owns talented employees of around 221,000 people (full-time), including 122,000 in the United States and 99,000 in the international workforce.
The Microsoft layoff announcement in 2023 was informed after the company declared the leave policy without a specific time limit. This regulation applies only to all employees in the United States who receive a regular salary.
As it is known, Microsoft has also been under pressure to retain business enhancement in Azure’s cloud business unit. In several quarters of last year, the company demonstrated a business decline in the personal computer market, impacting the Windows detriment and device sales reduction.
Cited in detik.com, the CEO of Microsoft, Satya Nadella, recognized that the company also experienced business turbulence amidst the global alteration, particularly around the technology sectors. For this reason, he claimed the company needs to perform the efficiency stage.
“The upcoming two years are predicted to be the most challenging momentum. We grasped plenty of acceleration during the pandemic, and there will be some normalization of these demands. Apart from these challenges, the recession will also occur in several countries worldwide.” Nadella said during the interview with CNBC.
