As tech giants continue to trim headcount to weather challenging economic times, media reports indicate that Microsoft is preparing to eliminate more positions from its global workforce.
As early as Wednesday, according to Bloomberg News, the venerable computer company could announce layoffs in its engineering divisions.
Microsoft declined to comment on the “rumor,” according to a spokesperson who spoke to AFP.
The Washington state-based business, which according to industry watchers employs over 220,000 people, made two rounds of layoffs in 2017.
A week prior to Microsoft’s scheduled earnings release for the final three months of last year, a new round of layoffs would be announced.
Wedbush analyst Dan Ives wrote in a note to investors, “Over the last few weeks we have seen significant headcount cut reduction from stalwarts Salesforce and Amazon.”
Ives informed investors that Wedbush anticipates additional staff reductions in the tech sector of between 5 and 10%.
In light of softer (macro-economic conditions), many of these companies need to rein in their spending, according to Ives. “Many of these companies were spending money like 1980s Rock Stars.”
Early in January, the online retail behemoth Amazon announced its intention to eliminate more than 18,000 positions from its workforce, citing “the uncertain economy” and the fact that it had “hired rapidly” during the pandemic.
The recent layoffs that have affected the formerly unstoppable US tech sector, including at titans like Facebook owner Meta, are smaller in scale than the job-slashing plan.
CEO Andy Jassy informed staff that some of the Amazon layoffs would occur in Europe and that the impacted employees would be notified beginning on January 18.
In response to inflation, major platforms with an advertising-based business model are facing budget cuts from advertisers.
In November, Meta disclosed the loss of 11,000 jobs, or roughly 13% of its workforce. At the end of August, Snapchat let go of 1,200 workers, or about 20% of its workforce.
Salesforce, an IT company, also announced in early January that it would be laying off roughly 10% of its workforce, or just under 8,000 people.
Elon Musk, a billionaire, purchased Twitter in October, and promptly let go roughly half of its 7,500 staff members.
Unknown numbers of workers quit in opposition to his policy changes.