Written by: euronews with ap
The company, which observers say employs about 220,000 people, carried out two cuts last year.
Microsoft is preparing to make a new reduction in its workforce in the world, according to media reports Tuesday, in light of the continuing giant technology companies to reduce the number of their employees to overcome the difficult economic conditions.
And the “Bloomberg News” network stated in a report that the leading computer technology company may announce layoffs in its engineering departments as early as Wednesday.
A Microsoft spokesperson told AFP that the company does not comment on what it described as a “rumour”.
The company, which observers say employs about 220,000 people, made two cuts last year.
The disclosure of the new layoff plan will come just a week before Microsoft announces its earnings for the last three months of last year.
“Over the past weeks, we’ve seen a significant reduction in the workforce at Amazon and Salesforce,” said Dan Ives, an analyst at Woodbush Wealth Management and Advisory.
Ives told investors that Woodbush expects another 5-10 percent cut in the number of employees in the technology sector.
“Many of these companies spent money like rock stars in the 1980s and now need to get their expenses under control before softer macroeconomic conditions,” Ives wrote.
Amazon announced in early January that it plans to cut more than 18,000 jobs, citing “economic uncertainty” and rapid hiring during the Covid-19 pandemic and the boom in online sales.
This layoff plan is the largest in the US technology sector, which was considered impregnable in the past, and giant companies such as Meta, owner of Facebook, have resorted to this last resort.
It is expected that the Amazon layoff process will include its branches in Europe, and the company’s CEO, Andy Jassy, announced in a statement that the concerned employees will be informed as of Wednesday, January 18th.
Major ad-dependent platforms are facing advertisers cutting their budgets in the face of inflation.
And Meta announced in November that it would cut 11,000 jobs, or about 13 percent of its workforce.
At the end of August, Snapchat let go of 20 percent of its employees, or 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, immediately firing about half of the social media platform’s 7,500 employees.