Tech giant Microsoft confirmed workforce reduction, describing the move as part of a realignment recently. Satya Nadella-run Microsoft further said it will keep growing its overall headcount in other areas as per its plans.
Microsoft has become the first tech giant to lay off employees due to the ongoing economic slump.
This synchronous workforce reduction has reportedly affected nearly 1 percent of its 1,80,000- employees across Microsoft’s various departments
Similarly in 2009 and 2017, Microsoft cut thousands of positions because of financial losses.
“Today we had a small number of role eliminations. Like all companies, we evaluate our business priorities regularly, and make structural adjustments accordingly,” Microsoft told Bloomberg in a statement late on Tuesday.
“We will continue to invest in our business and grow headcount overall in the
The year ahead,” the company added.
Microsoft reported surplus revenue in the third quarter with 26% growth in just a year in the cloud department and overall revenue of $49.4 billion. Still, Microsoft has slowed recruitment for its window, teams, and office groups.
It’s not just Microsoft that is laying off employees. On the other side tech giants like Twitter and Tesla are also firing their workforce. Recently Twitter has cut 30% of its recruitment and Tesla has been laying off hundreds of employees.
Due to the economic slump, major tech players also have slowed hiring, this includes Nvidia, Snap, Uber, Spottily, Intel, and Salesforce.
Even the Cloud major Oracle recently considered laying off thousands of staff to save up to $1 billion in cost-cutting measures, the media reported.
(Inputs from IANS)