Microsoft to Slash Thousands of Jobs

Microsoft Corporation intends to cut thousands of jobs, with some of the roles eliminated expected to come from key divisions like human resources and engineering.

The layoffs would underscore a worrying trend among US technology firms. Amazon and Meta Platforms Inc have both begun significant layoffs as a worsening global economic outlook softens demand.

Analysts believe that the latest news from Microsoft confirms the tech sector will persistently shed jobs in a sign that the economic environment will continue to worsen in the short term.

Media reports indicate that Microsoft plans to cut about 5% of its workforce, or about 11,000 jobs. At the same time, new hires have been slowed and the firm has cut down on new recruitment by as much as a third.

According to company filings, Microsoft employs 221,000 full-time employees, including 122,000 in the US and 99,000 in overseas offices.

Technology stocks are seen as a bellwether for economic prospects, making the depth of these job cuts a worrying development for the industry and beyond. Microsoft is under pressure to demonstrate meaningful growth in its cloud division Azure after several quarters of a downturn in the personal computer market hurt Windows and devices sales.

Shares of Microsoft were marginally higher on the news of layoffs, although analysts expect investors will regroup and consider which approach to take with the tech industry facing headwinds from weak consumer demand.