Microsoft will lay off nearly 11,000 employees

The technology company would be preparing thousands of layoffs this week.

Layoffs at technology companies continue. To what happened last year with Amazon, Meta, Twitter, among others, is now added Microsoft, that in the next few days it would be laying off 5% of its workforce.

According to Sky News the layoffs will start soon and would be around 11,000 employees. Although they will affect all sectors, the actions will be especially focused on divisions such as human resources and engineering, taking into account that the company has close to 221,000 workers in the world.

Additionally, the company would reduce the hiring of personnel by a third. So in general, the cuts would be much larger than those made in 2022 that according to Axiosthere were approximately 1,000 layoffs.

“From a general perspective, another pending round of layoffs at Microsoft suggests that the environment is not improving and is likely to continue to worsen,” he said. Dan RomanoffMorningstar analyst at the agency Reuters.

The company's shares have fallen by 62.30% over the past year.

The company’s shares have fallen by 62.30% over the past year.

Why are there layoffs at Microsoft?

This isn’t the only tech company that has cut its workforce in the past six months. Amazon announced the layoff of 18,000 employees, Goal of 11,000, salesforce of 8,000 and Twitter more than 4,000.

The situation that arises due to several factors: low demand for products by users, economic complications worldwide and reduction in resources for the manufacture of products.

An example of this is that during the fourth quarter of 2022 PC shipments in the world fell by 28.5% compared to the same period of the previous year, according to Gartnera market consultant.

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The same happens when you put the total number of shipments in 2022 against that of 2021, which had a decrease of 16.2%, which represents the largest crisis in this industry since the 1990s and which could last longer. .

The computer market had a 26% drop in shipments in recent months.

The computer market had a 26% drop in shipments in recent months.

Another point that analysts highlight is the high contraction that occurred in 2020 in the pandemic, given the high requirements for work and study at home.

“You have to take into account that there was a boom of hiring from 2020 onwards, because there was growth in companies during the pandemic, but that optimism is not being reflected in higher revenues and the impact of the pandemic has already diminished, so it is being seen that there were not as many resources to future to invest in that large number of workers,” said Edgar Medinaexpert in technology and digital marketing, to infobae about this crisis in the sector.

punctually with Microsoftthe company is looking for ways to maintain growth rates for its Azure cloud unit, which slowed its advance to 35% in the first fiscal quarter of 2023 and will continue to decline in the current period.

Yahoo! Finance indicates that the company’s shares have fallen by 62.30% over the last year and the company’s projections will deliver a new report on January 24.

As of June 30 last year, the technology company’s workforce consisted of 221,000 full-time employees globally, including 122,000 in USA and 99,000 in other countries.

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