Microsoft has admitted “structural adjustments” in the wake of a report suggesting the US tech firm cut about 1,000 jobs this week.

The company, Axiom reported on Tuesday, has wielded the ax across several divisions, building on a weaker hiring pace across the industry this year amid rising inflation and stalling economic growth.

Big tech was a big winner during the COVID pandemic, as investor money poured into stocks that supported work from home and a new hybrid business future, for example.

They became known as “growing stocks” and were, apart from many health and logistics actions, seen as the only game in town when the blocks took hold and choked the business as we knew it.

But tech stocks soon came under pressure as consumer and business budgets were squeezed by the pace of global price hikes.

In the United States, a strong dollar has also hammered the overseas earnings of multinationals because profits are reduced when returned to their respective American locations.

A Microsoft spokesperson said of the cuts: “Like all companies, we regularly evaluate our business priorities and make structural adjustments accordingly.

“We will continue to invest in our business and recruit in key growth areas over the next year.”

The layoffs affected less than 1% of Microsoft’s total workforce of approximately 221,000.

Meta – the owner of Facebook – Twitter and Snap Inc have all cut jobs and reduced hiring in recent months.

Microsoft shares have lost nearly a third of their value over the past year.

For more information on science and technology, explore the future with Sky News at Big Ideas Live 2022.
Find out more and book tickets here

Leave a Reply

Your email address will not be published. Required fields are marked *