Microsoft will lay off almost 11,000 employees

Layoffs continue at tech companies. What happened last year Amazon, Meta, Twitter, Added now by the way Microsoft, that it will lay off 5% of its workforce in the coming days.

According to Sky News, the redundancies will begin soon and will affect around 11,000 employees. Although they will affect all sectors, the actions will be particularly focused on departments such as human resources and engineering, given that the company has up to 221,000 employees worldwide.

In addition, the company will reduce staff recruitment by a third. So, overall, the reductions will be much larger than those made in 2022 AxiosAbout 1,000 jobs were laid off.

“From an overall perspective, another expected round of Microsoft layoffs indicates that the environment is not improving and is likely to worsen,” he said. Dan RomanovMorningstar analyst at the agency Reuters.

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Why layoffs happen at Microsoft?

It’s not the only tech company to cut its workforce in the past six months. Amazon announced 18,000 layoffs. purpose out of 11,000, sales force from 8000 and Twitter More than 4000.

A situation that arises due to several factors: low demand for products by consumers, economic difficulties around the world and a decrease in resources for the production of products.

An example of this is that in the fourth quarter of 2022, the worldwide supply of computers decreased by 28.5% compared to the same period of the previous year. GartnerMarket consultant.

The same thing happens when you compare the total number of shipments in 2022 with the number of shipments in 2021, which has decreased by 16.2%, representing the biggest crisis in this industry since the 1990s and which may last longer.

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Another point that analysts emphasize is the high contraction observed in 2020 during the pandemic, given the high demands of working and studying at home.

“You should take into account that there was a Boom Hiring from 2020, because there was an increase in companies during the pandemic, but this optimism is not reflected in higher revenues, and the impact of the pandemic has already subsided, so it seems that there were not so many resources for the future. Investing in this large number of employees,” he said Edgar MedinaTechnology and digital marketing expert to infobae About the crisis in this sector.

punctually together MicrosoftThe company is looking for ways to maintain growth rates for its Azure cloud unit, which slowed to 35% in the first fiscal quarter of 2023 and will continue to decline in the current period.

Yahoo! finances indicates that the company’s shares have fallen 62.30% over the past year, and the company forecasts that it will issue a new report on January 24th.

As of June 30 last year, the technology company’s workforce consisted of 221,000 full-time employees globally, including 122,000 USA and 99,000 in other countries.

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