Microsoft reportedly laid off nearly 1,800 employees recently, affecting about 1 percent of its 1,80,000 workforce across its offices and product divisions.
“Today we had a small number of role eliminations. Like all companies, we evaluate our business priorities on a regular basis, and make structural adjustments accordingly,” Microsoft said in a statement.
“We will continue to invest in our business and grow headcount overall in the year ahead.”
Hiring is continuing but has slowed in the Windows, Teams, and Office groups.
The tech goliath earned solid profits in its third quarter, with a 26% jump in cloud revenue and overall revenue of $49.4 billion.
However, it was reported that the company revised its Q4 revenue and earnings guidance downward last month amidst recession fears. As per reports, the company said the layoffs were not spurred by the worsening economic picture.
These patterns have been mirrored by other Big Tech companies too, like Twitter which cut 30% of its recruiting team while Elon Musk’s Tesla has also been laying off hundreds of employees. Other tech companies that have slowed hiring include Uber, Spotify, Intel, and Salesforce, among others.
Oracle has also recently been considering laying off thousands of workers to save up to $1 billion in cost-cutting measures.
All this fear comes amidst fears of a global recession. Last week, IMF Managing Director Kristalina Georgieva said that the outlook for the global economy had “darkened significantly” since April 2022, and the possibility of global recession next year could not be ruled out amid elevated risks.
“We are in very choppy waters,” she said. When asked if she could rule out a global recession, she said, “The risk has gone up so we cannot rule it out.”
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