Just a week after Microsoft announced its new unlimited leaves policy for US employees, the tech giant seems set to cut thousands of jobs?with some roles expected to be eliminated in human resources and engineering divisions, according to various media reports.
Microsoft reportedly plans to cut about 5% of its workforce, i.e about 11,000 employees.??
The layoff news comes about a week before Microsoft is expected to report its quarterly results on Jan. 24.The job cuts this time will be significantly larger than other rounds in the past year, a Bloomberg report said.
Microsoft had already conducted two rounds of layoffs last year, affecting around 1,000 employees in October 2022 and about 1,800 in July 2022.
The expected layoffs would be the latest in the U.S. technology sector, where companies including Amazon and Meta Platforms have already announced job cuts in response to slowing demand, rising recession fears and a worsening global economic outlook.
And Microsoft's move could indicate that the tech sector may continue to shed jobs.?
"From a big picture perspective, another pending round of layoffs at Microsoft suggests the environment is not improving, and likely continues to worsen," Morningstar analyst Dan Romanoff said, as per Reuters.
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Citing sources, UK broadcaster Sky News reported that Microsoft plans to cut about 5% of its workforce?or about 11,000 roles.
The company plans to cut jobs in a number of engineering divisions on Wednesday, Bloomberg News reported, according to a person familiar with the matter, while?
Microsoft had 221,000 full-time employees, including 122,000 in the United States and 99,000 internationally, as of June 30, according to filings.
As per Reuters, Microsoft is under pressure to maintain growth rates at its cloud unit Azure, after several quarters of a downturn in the personal computer market hurt Windows and devices sales.
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