Microsoft will cut staff again: reports

The computer industry powerhouse may announce layoffs in its engineering divisions as early as Wednesday, Bloomberg News reported.

A Microsoft spokesperson told AFP that the company would not comment on what it referred to as a “rumour”.

The Washington state-based company, which industry trackers say has more than 220,000 workers, cut its staff twice last year.

A new announcement about layoffs will come a week before Microsoft reports its earnings for the last three months of last year.

“Over the past few weeks, we’ve seen significant headcount cuts from Salesforce and Amazon,” Wedbush analyst Dan Ives said in a note to investors.

Ives told investors that Wedbush expects to cut staff by another 5 to 10 percent in the technology sector.

“Many of these companies were spending money like Rockstars in the 1980s and now need to get expenditure controls under control before softer[macroeconomic conditions],” Ives wrote.

Amazon announced in early January that it planned to cut more than 18,000 jobs from its workforce, citing the “uncertain economy” and the fact that the online retail giant “hired quickly” during the pandemic.

The job cuts plan is the largest among recent layoffs that have hit the otherwise irreplaceable US tech sector, including giants like Facebook owner Meta.

Some Amazon layoffs will be in Europe, CEO Andy Jassy said in a statement to employees, adding that affected workers will be notified starting Wednesday, January 18.

Major platforms with an ad-driven business model are facing budget cuts from advertisers, who are cutting expenses in the face of inflation.

Meta announced in November the loss of 11,000 jobs, or about 13 percent of its workforce. At the end of August, Snapchat let go of about 20 percent of its staff, about 1,200 people.

And in early January, IT group Salesforce announced it would lay off about 10 percent of its staff, or just under 8,000 people.

Billionaire Elon Musk bought Twitter in October, which promptly fired about half of the social media platform’s 7,500 employees.

An unknown number resigned in protest of his policy changes.

g / palace

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