The new year will not have marked the end of layoffs in the technology sector.
News: Microsoft plans to lay off nearly 5% of its workforce across all its divisions, particularly in human resources and engineering, or about 11,000 positions.
The context : the Redmond company will thus follow in the footsteps of its sisters, in particular Amazonia, A half or Googleeach of which reduced its workforce in the last half of 2022, due to the slowdown in demand and the deterioration of the global economic outlook.
- The massacre is therefore not over, as advanced Forbes at the beginning of the year. The first half of 2023 should also be marked by further staff reductions in the technology sector.
The detail : Last October Microsoft had already laid off just under 1,000 employees from different divisions. The American giant had also eliminated vacancies and suspended hiring in various branches.
- At that time, Microsoft signed up disappointing quarterly results and expected the fourth quarter to be even worse.
- This new wave of layoffs suggests that results – to be announced on January 24 – will be disappointing, but also that the technology sector could continue to reduce its workforce, while the macroeconomic situation remains tense, despite slight signs of improvement .
- “From a global perspective, another round of pending layoffs at Microsoft suggests the environment is not improving and will likely continue to deteriorate,” he said. analyst Dan Romanoff from MorningStar.
- The fact is that Microsoft has seen its sales of personal computers and its consumer software drop, due to a slowdown in demand. In addition, the Redmond company is also under pressure to maintain growth rates its Azure cloud drive.
The good news for people who will be impacted by these layoffs is those who actually work in the tech industry find work quickly.