An American multinational technology company, Microsoft will sack 11,000 employees worldwide due to the global economic slowdown.
The year 2023 has begun on a bad note for tech workers globally. There have been nearly 91 companies that have laid off more than 24,000 tech employees in the first 15 days this month. More than 1,600 tech employees are being laid off per day on average in 2023 globally including in India.
Microsoft plans to cut several engineering divisions in fresh rounds of layoffs. The company employs 221,000 full-time employees, including 122,000 in the United States and 99,000 internationally as of June 30.
The company is currently reducing roughly 5 percent of its workforce. Earlier in October, the company reportedly laid off under 1,000 employees across several divisions. The job cuts impacted less than 1 percent of the company’s workforce. The company hasn’t officially commented on the impending layoffs.
Recently, Amazon has also announced it lay off more than 18,000 employees. This affected nearly 1000 employees in India. Reportedly, Salesforce began a fresh round of layoffs and it will affect many employees followed by Goldman Sachs layoffs.
Recently, McDonald’s CEO Chris Kempczinski has confirmed that the company may layoff employees in April 2023 as part of a cost-cutting exercise.
The job cuts are due to Microsoft’s revenue being expected to slow and follow no clear pattern concerning geography or product division.
The move is part of a larger trend of tech companies cutting jobs and slowing hiring as investors become increasingly fearful of a recession.