Microsoft could soon announce major job cuts – accounting for up to 5% of its global workforce, according to news reports.
SkyNews report that Microsoft is considering cutting about 5% of its 220,000 global workforce, or about 11,000 employees.
Based on The Wall Street JournalMicrosoft could announce the layoffs as early as Wednesday morning, a week before its quarterly earnings update.
Microsoft will cut jobs from some engineering departments on Wednesday, citing a source who said the cuts would be significantly larger than the roughly 1% the company cut in July and October last year. . Bloomberg’s report.
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Microsoft’s job cuts follow similar scale cuts at Amazon, announced 18,000 jobs cut this month and Salesforce, cutting 8,000 roles. Both companies recruited aggressively in the early stages of the pandemic. Facebook mother Meta also 11,000 roles cut in November — the first drop since Facebook launched in 2004. And Twitter under Elon Musk has cut its workforce by more than 3,000represents half of its former employees.
Microsoft Cloud and Azure have been the best performing business units in recent years, consistently posting revenue growth of around 30%. However, Windows revenue was hit by a strong US dollar and PC sales shrink as consumers and businesses tighten their belts amid high inflation. Windows OEM Revenue 15% off last quarter.
Thanks to ChatGPT capturing the world’s attention, one bright spot for Microsoft was its $1 billion investment in OpenAI, which has turned into Azure OpenAI service is now widely available. In addition to access to GPT-3.5, Codex, and DALL•E 2, Microsoft will make ChatGPT available to customers.
Microsoft is said to be in talks to buy a $10 billion stake in OpenAI, which would give it a 49% stake in the $29 billion research and development company.
The 11,000 jobs at risk at Microsoft aren’t the company’s biggest cut yet. In July 2014, when the number of employees was 130,000, the company 18,000 workforce cutswhere 12,500 is from the Nokia device group.
