Microsoft is preparing to cut more positions from its global workforce. As the tech giant continues to pare headcount to ride out the rough economic conditions, according to media reports on Tuesday.
The computer industry giant may announce layoffs in its engineering division. As early as Wednesday, Bloomberg News reported.
A Microsoft spokesman told AFP the company would not comment on what it described as “rumors”.
The new layoff announcement comes a week before Microsoft reports its earnings for the final three months of last year.
“Over the past few weeks we’ve seen significant headcount cuts from stalwarts Salesforce. And Amazon,” Wedbush analyst Dan Ives said in a note to investors.
Wedbush expects to cut another 5 to 10 percent of its workforce in the technology sector, Ives told investors.
“Many of these companies were spending like rock stars in the 1980s. And now have to reign in cost control ahead of a softer (macro-economic condition),” Ives wrote.
Amazon announced in early January that it planned to cut more than 18,000 jobs from its workforce, citing. An “uncertain economy” and the online retail behemoth had “hired rapidly” during the pandemic.
The planned job cuts are among the biggest in recent layoffs that have hit the once-overwhelming U.S. tech sector, including at giants like Facebook-owned Meta.
Some of Amazon’s layoffs will be in Europe, CEO Andy Jassy added in a statement to employees, adding. That affected workers will be notified starting Wednesday, January 18.
Major platforms with an ad-based business model are facing budget cuts from advertisers,. Who are reducing spending in the face of inflation.
Meta announced the loss of 11,000 jobs, or about 13 percent of its workforce, in November. At the end of August, Snapchat let go of about 20 percent of its workforce, about 1,200 people.
And in early January, IT group Salesforce announced it was laying off about 10 percent of its workforce, or just under 8,000.
Twitter was bought in October by billionaire Elon Musk, who promptly fired nearly half of the social media platform’s 7,500 employees.
An unknown number more resigned in protest at his policy change.