Microsoft has joined the wave of layoffs in technology companies and will reduce its workforce by about 1%, although he attributed it to a “strategic readjustment” at the beginning of his new fiscal year, as reported on Tuesday.
“Today we have notified a small number of employees that their roles have been eliminated. This is the result of a strategic readjustment and, like all companies, we regularly assess our business,” Microsoft told CNBC.
The layoffs will affect 1% of the workforce, which has 180,000 employees, and will occur in various geographical areas and specialization, although the company is still “investing in certain areas” and hopes to “increase” its number next year, he added.
Microsoft closed its fourth quarter of fiscal year 2022 at the end of June -it does not follow the natural calendar- and predictably will publish its results this month.
During the year, strong demand for cloud services, led by Azure, boosted its profits by 25% compared to the same period of the previous fiscal year, up to almost 56,000 million dollars.
The company lowered its revenue and profit forecasts in June due to fluctuations in the currency exchange, and previously ordered several teams to be more cautious in hiring.
Other companies in the sector, such as Netflix or Meta, have also announced layoffs or hiring freezes in the middle of an economic situation that combines high inflation, slowing growth and rising interest rates.
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