Microsoft has confirmed new job cuts as mass-layoffs among Big Tech firms continue.
“We will continue to invest in our business and hire in key growth areas in the year ahead,” a Microsoft spokesperson told CNBC.
Go deeper with GlobalData
The news about Microsoft announcing new job cuts follows a round of layoffs affecting less than 1% of Microsoft employees announced three months ago.
CNBC reported that the job cuts were confirmed by a Microsoft spokesperson and that they come after the Redmond-headquartered company’s latest quarterly revenue growth reached a five-year low.
Josep Bori, research director at GlobalData, tells Verdict that the job cuts highlight the impact of a deteriorating PC market which already led management to guide for a “1% year-over-year decline in the more personal computing unit due to the PC market slowdown” for the third quarter of 2022.
“Investors are likely to be more comfortable with any incremental impact being limited to the traditional Windows franchise, as that is ultimately the beauty of the diversified Microsoft business model, than if there is a material slowdown in intelligent cloud,” Bori adds.
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By GlobalData“It really does show that there’s a very human cost to appeasing shareholders and the pursuit of growth,” Liam Reynolds, CEO of tech job fair Silicon Milkroundabout, tells Verdict.
“With the focus on growth, Microsoft is likely focusing any hiring on individuals who can make an immediate and short-term impact on the business. Sadly, like we’ve seen recently with Meta, this is usually at the expense of more junior and entry level talent.”
This follows a growing trend of job cuts and hiring freezes among Big Tech companies. Companies like Meta and Salesforce have slowed their hiring over the first 10 months of the year.
Elsewhere Coinbase, Netflix, Klarna and Lyft have announced huge job cuts in recent months.
However, the job cuts and hiring freezes have also meant that smaller startups are arguably able to scoop up talent that would’ve otherwise gone to tech titans.
GlobalData is the parent company of Verdict and its sister publications.
