Microsoft is on the verge of a major round of layoffs, with plans to cut 5% of its workforce, or 11,000 jobs.
The tech industry has been beset with mass layoffs as a result of the economic downturn, topping some 125,000 in 2022. Amazon, Meta, Salesforce, Oracle, and HP are just a few of the companies impacted. Microsoft is on the verge of joining that list, according to Sky News, with the company poised to cut 5% of its workforce. With some 200,000 employees, 5% equals roughly 11,000 staff.
Sky News was unable to confirm the exact number and cites one Wall Street analyst as believing the final number will likely be higher. The outlet also quotes Guggenheim analysts regarding Microsoft’s upcoming earnings.
“While most investors see Microsoft as a large stable business that can weather any storm, it does have vulnerabilities, some of which could be exacerbated by this macro[economic] slowdown,” they wrote.
Whatever the final tally turns out to be, the layoffs are sure to raise doubt about Microsoft’s prospects, doubt that is clearly already beginning to grow.