Microsoft plans to lay off more employees
- July 11, 2023
- 0
In an unexpected turn of events, Microsoft announced a new wave of layoffs that primarily impacted its sales, marketing and customer support departments. This comes just months after
In an unexpected turn of events, Microsoft announced a new wave of layoffs that primarily impacted its sales, marketing and customer support departments. This comes just months after CEO Satya Nadella previously announced that he would cut 10,000 jobs expected to be completed by the end of March. News of these additional layoffs emerged as several employees updated their LinkedIn profiles to reflect their status as part of the new layoffs.
Many tech companies seem to be taking advantage of AI becoming mainstream
A Microsoft spokesperson confirmed the recent workforce changes, saying, “Organization and workforce changes are a necessary and normal part of running our business. We will continue to prioritize investments in strategic development areas to support the future of our customers and partners.” While the statement may provide some insight into the motivation behind the layoffs, it remains unclear why these particular departments were targeted.
Despite these layoffs, Microsoft’s finances remain strong in 2023. In the last six months, the company’s shares have risen an impressive 40.74%. This upward trajectory can be attributed, at least in part, to Microsoft’s investment in its productive AI business. The company realized the potential of artificial intelligence, and its strategic decisions in this area worked out well.
Microsoft isn’t the only company benefiting from the AI revolution. Share prices of other technology companies rose significantly with the effect of artificial intelligence. For example, in 2023, Nvidia’s stock price rose an impressive 194.61% to record highs.
As Microsoft’s fiscal year ends on March 31, 2023, the company’s net income rose 9% from last year to $18.3 billion. Investors are eagerly awaiting Microsoft’s fourth-quarter earnings announcement, scheduled for later this month.
While the latest news of layoffs may sound alarming to some, Microsoft says it’s to strengthen its strategic focus on growth areas. The company makes a clear statement about its desire to stay ahead of the game, coupled with its strong financial position.
Source: Port Altele
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