Microsoft is getting ready to slash more jobs from its worldwide workforce as software companies continue to reduce staff numbers to weather the current economic crisis.
According to Bloomberg News, the legendary name in the computer business may announce layoffs in its engineering departments as soon as Wednesday.
Microsoft will not comment on what it referred to as “rumour,” a spokeswoman for the company told AFP.
The Washington-based company, which according to industry watchers employs over 220,000 people, reduced its workforce twice last year.
A week before Microsoft is scheduled to release its profits for the final three months of last year, a new layoff announcement would be made.
“Over the last few weeks we have seen significant headcount cut reduction from stalwarts Salesforce and Amazon,” Wedbush analyst Dan Ives said in a note to investors.
Wedbush is expecting staff cuts of another 5 to 10 percent across the tech sector, Ives told investors.
“Many of these companies were spending money like 1980’s Rock Stars and now need to reign in the expense controls ahead of softer (macro-economic conditions),” Ives wrote.
Early in January, the online retail giant Amazon announced its decision to eliminate more than 18,000 positions from its workers, blaming “the uncertain economy” and the fact that it had “hired swiftly” during the pandemic.
The job-cutting exercise is the most significant among recent layoffs that have hit the hitherto unstoppable US tech sector, including giants like Facebook-owner Meta.
