Tech giant, Microsoft, is planning to layoff staff in their thousands from the human resources and engineering units of the company. While the company has not confirmed the reports, it is believed that the layoffs will take place in several engineering divisions, including the Windows and Devices Group. This tranche of layoffs could be the largest in the company’s history.
According to those familiar with the matter, Microsoft laying off staff is in response to the slowing demand and a worsening global economic outlook, similar to what other tech companies like Amazon and Meta Platforms have done recently. Microsoft’s revenue has grown in recent years, but the company has been facing increased competition from rivals like Google and Apple. This has led the company to focus on its cloud computing and artificial intelligence businesses, and it has been investing heavily in these areas.
As of June last year, Microsoft had 221,000 full-time employees, including 122,000 in the United States and 99,000 across its international offices. In addition to the reported layoffs in its engineering division, there are also indications that Microsoft could cut off one-third of jobs from its recruiting unit. The company plans to focus on hiring for high-priority areas like cloud computing and artificial intelligence, and as a result, recruiting staff in other areas will be impacted.
