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Microsoft Corporation was revealed to have terminated hundreds of employees and this was confirmed by the company’s spokesperson earlier this week. The tech firm said that the job cuts were the result of slow corporate growth.
Earlier this year, Microsoft already mentioned that it has plans of reducing its workforce. At that time, the company said it may cut less than one percent of its total employees. The firm’s spokesman said they have terminated additional workers as the revenue is expected to be slow-moving due to the weak sales of Windows licenses for personal computers.
According to CNBC, the workforce reduction move is also in line with Microsoft’s efforts on cutting costs just like the other major tech companies these days. It was noted that companies such as Salesforce and Meta Platforms have also done the same thing and frozen their employee hiring as well. Netflix and even some blockchain firms, including Coinbase were also left with no option but to cut jobs due to rising costs but the sales are slow.
“Like all companies, we evaluate our business priorities on a regular basis, and make structural adjustments accordingly but we will continue to invest in our business and hire in key growth areas in the year ahead,” Microsoft’s spokesman told CNBC in an interview.
The latest job termination at Microsoft comes three months after the company’s last layoffs. In the latest cuts, less than 1,000 employees are affected, but it was not mentioned what divisions they are from.
MarketWatch reported that Microsoft is one of the tech companies that have let go of staff members as there is also a fear of a looming recession which experts said is happening very soon. This is also one of the main reasons why major companies have resorted to layoffs, as they have no other options to combat the slowing growth and high costs.
Finally, Microsoft has been struggling with the abrupt slowdown and decline in its business units, including video games and its cloud business. It is now working to boost its sales again and hopefully avoid more job terminations in the future.
