By Wednesday, Microsoft’s global workface is probably going to shrink and majority of the layoffs will take place in the engineering department. Microsoft has 2,20,000 employees working for it at its offices throughout the world, and last year, it reduced its workforce by 20%.
Microsoft on Cost Cutting Drive set to reduce its workforce
Microsoft has started a cost-cutting drive as part of its effort to weather challenging market circumstances and economic downturns.
The new layoff announcement comes a week before Microsoft is set to report its earnings for final three months of the year. Meanwhile a Microsoft ‘s spokesperson has told sources that the company would not comment on what it referred to as rumour.
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Global Tech Giants on employee firing spree
Tech giants like Salesforce and Amazon have significantly reduced their headcount. Industry insiders have also stated that they anticipate additional workforce reductions in the tech sectors of between 5 and 10 percent.
Industry insiders have also said that tech companies had a spending spree in the past and that, when the state of the world economy worsened, they had to start cutting costs to manage their spending.
With online retail behemoth Amazon announcing plans to cut more than 18,000 positions from the workforce in early January, citing an uncertain economy, 2023 has started off with pretty bad news for the global employment landscape. At the height of Covid-19, Amazon had set a blistering pace for personnel hiring.
Major platforms with an advertising-based business model are cutting their expenses due to budget cuts from advertisers. One of the key factors that is affecting the performance of tech-based business titans is raging inflation.
11,000 jobs, or around 13% of its workforce, were cut by Meta in November of last year. Prior to that, Snapchat had let go of 1200 workers, or 20% of its workforce.
Early in January, the IT Company Salesforce said it would be letting go of 8,000 employees, or around 10% of its workforce. When Elon Musk bought Twitter in October, the social media network underwent a significant shakedown that resulted in the firing of 7,500 employees, or 50 percent of its workforce.
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