Microsoft planning massive layoffs, thousands of workers to be let go

January 18, 2023  15:25

Microsoft plans to make massive layoffs in several departments. According to Reuters, about 6,000 employees may be cut in the near future, but no specific dates have been noted yet. And as per Sky News, Microsoft will cut about 5% of its workforce, or about 11,000 employees.

According to the mass media, the most reductions are planned in the departments that deal with the development of solutions and consulting for customers and partners.

As per Bloomberg, layoffs are also planned in a number of engineering departments; moreover, the layoffs in these departments will be more than last year.

The cuts are likely due to the fact that the company expects a slowdown in revenue growth, as well as the economic crisis which has already led to layoffs at many large companies, including Meta, Oracle, Tesla, Amazon, Vimeo, Twitter, and even McDonald's.

According to Dan Romanoff, an analyst at the American Morningstar Research Services company providing financial services, the next round of layoffs at Microsoft indicates that the situation is not improving, but, on the contrary, continues to worsen.

However, at the same time, the working conditions of the remaining employees can be said to be improving. As of Monday, salaried—but not hourly-paid—employees of the company can go on unlimited vacation. In addition, many employees are allowed to work from home full-time.

As of June 30, 2022, Microsoft had 221,000 full-time employees, with 122,000 of them in the United States and 99,000 in other countries, according to company filings.

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