According to media reports on Tuesday, Microsoft Corp. intends to cut thousands of jobs, with some roles expected to be eliminated in the engineering and human resources departments.
Companies like Amazon.com Inc. and Meta Platforms Inc. have announced retrenchment exercises in response to slowing demand and a worsening global economic outlook. The anticipated layoffs would be the latest in the US technology sector.
The move by Microsoft may suggest that job losses in the technology industry may continue.
Morningstar analyst Dan Romanoff stated, “From a big picture perspective, another pending round of layoffs at Microsoft suggests the environment is not improving, and likely continues to worsen.”
Sky News, citing reliable sources, reported that Microsoft intends to eliminate approximately 11,000 positions or 5% of its workforce.
A person familiar with the situation told Bloomberg News that the company intends to cut jobs on Wednesday in a number of engineering divisions. Insiders also said that Microsoft could cut recruiting staff by as much as a third.
According to the Bloomberg report, the cuts will be significantly larger than those from previous rounds this year.
Microsoft didn’t say anything about the reports.
According to filings, the company had 221,000 full-time employees as of June 30, 122,000 in the United States, and 99,000 worldwide.
After Windows and devices sales suffered during several quarters of a downturn in the personal computer market, Microsoft is under pressure to maintain growth rates at its cloud unit Azure.
In July of last year, it stated that a few roles had been eliminated. Axios, a news site, reported in October that Microsoft had laid off less than 1,000 workers from several divisions.
In late-afternoon trading, Microsoft shares were slightly higher. On January 24, the company is scheduled to release its quarterly results.