Just months after laying off nearly XNUMX employees in its Xbox and Edge divisions, Microsoft is now poised to carry out another round of layoffs in the coming weeks, affecting XNUMX% of its workforce, according to a Sky report. News.
About 11.000 of Microsoft's XNUMX employees are expected to bear the brunt of the ruling, according to the report, citing a Wall Street analyst who predicted the number could be higher.
Microsoft declined to comment.
A separate Bloomberg report citing sources said the new round of layoffs is expected in response to expected lower demand due to macroeconomic conditions and is likely to affect engineering teams at Microsoft.
Microsoft had reported its slowest growth in 5 years through the first quarter of its fiscal year XNUMX, in large part due to a strong US dollar and a continued decline in PC sales, which led to a slowdown. of net income, an increase of fourteen% to €XNUMX billion from now on. last year.
In the preceding quarter, the company's net income was partially flat at $XNUMX million, with a considerably more modest increase of just two percent.
The Windows maker has embedded hiring freezes across multiple divisions, and new job postings now must have higher-level clearance, according to a report by The Business Insider.
The new offers offered pay XNUMX% less than previous offers made for similar positions in the company, according to the report.
If the reports are accurate, the new layoffs at Microsoft will be very similar in scale and nature to layoffs at Meta, Amazon and Salesforce, all of which have cited macroeconomic concerns as the primary reason for the downsizing strategy.
Big tech companies continued to cut staff from August of last year through January.
In the first eighteen days of XNUMX alone, one hundred and four technology companies laid off more than XNUMX zero employees, according to data compiled by layoffs.fyi. Last year, the portal's data shows that one thousand twenty-one companies laid off one hundred fifty-four thousand and thirty-six employees.
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