Microsoft feels the crisis, lays off 10,000 workers

Weaker consumer demand is affecting the entire technology industry, and the latest example is Microsoft.

Jan 20, 2023 - 13:00
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Microsoft feels the crisis, lays off 10,000 workers

Microsoft, the Redmond-based technology behemoth, is prepared to initiate huge layoffs in the coming days. According to Sky News, this corporation presently employs 221,000 individuals, of which 122,000 are full-time employees, and that figure will shortly be decreased by 5%, or by roughly 10,000 jobs. The layoffs will mostly affect the company's engineering divisions.

This is not the first time the company has laid off workers in the last year - the most recent layoff was in October when 1,000 people were let go - but it is the most extensive and in line with layoff figures that other tech companies have had to share, and the most famous layoffs in the media were undoubtedly at the time at Twitter when Elon Musk fired 50% of employees.

Microsoft, like other corporations, has increased recruiting during the pandemic to deal with a sudden increase in the number of people studying or working from home who use Microsoft products. Companies are being compelled to reduce their workforces as the economy grinds to a halt and consumer demand dwindles.

Microsoft is likely to announce the layoffs ahead of its quarterly earnings announcement on January 24, when the Redmond, Washington-based business is expected to report its slowest revenue growth since fiscal 2017.

Working in technological businesses, which was once incredibly rewarding, has proven to be extremely perilous in recent months. More layoffs were recorded in the first week of this year than in the entire month of December, with Amazon being the most notable example, having laid off 18,000 people.

Amazon has known since November that 10,000 employees will be laid off. Background figures are poor business figures. Amazon's device division alone has lost $5 billion US dollars. Soon after, rumors circulated that the downsizing would be considerably more significant. It is a sad certainty that Amazon will lay off 18,000 people worldwide at the start of 2023.

It is the first time in the company's history that a big downsize has occurred. Amazon employs 1.5 million employees, making it one of the world's largest employers. Employees in the United States, Canada, and Costa Rica will be advised of their job loss through email first, with additional nations to follow. In addition to the substantial losses in the equipment division, excessive inflation and a recession in some regions are weighing on the company's bottom line.

It announced in November that the layoffs will target personnel in management, human resources, retail, and the Amazon Devices segment. It's unclear which departments would be affected by the massive employment reduction announced today.

Post by Bryan C.