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Microsoft becomes latest tech company to cut jobs

by Staff Writer
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Microsoft becomes latest tech company to cut jobs
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Reportedly fewer than 1,000, the Microsoft job cuts are across a range of levels and fields – coming just months after a revenue slowdown.

Microsoft is the latest tech company to announce job cuts as it predicts slow revenue growth amid ongoing economic uncertainty.

Confirmed by a spokesperson to multiple media outlets, the job cuts comes less than three months after Microsoft reported its slowest revenue growth since 2020 in July. The company blamed “unfavourable foreign exchange rate movement” for the slowdown.

Other factors included extended production shutdowns in China as well as a slowdown in PC and gaming sales. Around this time, Microsoft also announced that it had trimmed less than 1pc of its employees.

“Like all companies, we evaluate our business priorities on a regular basis, and make structural adjustments accordingly,” Microsoft told Axios of the latest cuts, which is reportedly less than 1,000 in number and across a range of roles and levels globally.

“We will continue to invest in our business and hire in key growth areas in the year ahead.”

Microsoft’s next earnings report is expected on 25 October.

Meanwhile, there are rumours that Intel is planning to cut thousands of jobs across its global operations amid an ongoing PC sales drop – with uncertainty around whether this includes Ireland.

Bloomberg reported that the decision is being made to cut costs and handle issues in the PC market, according to people with knowledge of the situation. Intel, which declined to make any comment at this time, currently employs nearly 5,000 staff across its Irish operations.

Other tech companies that have announced job cuts recently include Snap, Coinbase, Netflix, Twilio, Patreon, Novartis, among others.

Meta CEO Mark Zuckerberg told employees in a Q&A last month that Meta is cutting its budget across most teams – even ones that are growing – amid revenue challenges and increasing competition. This is the company’s first major budget cut after 18 years of growth.

“I had hoped the economy would have more clearly stabilised by now,” Zuckerberg reportedly said, hinting that job cuts might be on the table. “But from what we’re seeing it doesn’t yet seem like it has, so we want to plan somewhat conservatively.”

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Source by www.siliconrepublic.com

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