In an email to MarketWatch, a Microsoft spokesperson confirmed the accuracy of the reports, adding: “Like all companies, we evaluate our business priorities on a regular basis, and make structural adjustments accordingly. We will continue to invest in our business and hire in key growth areas in the year ahead.”
Microsoft is apparently the latest major tech company to cut staff amid fears of a looming recession. Snapchat parent Snap, recently announced plans to slash 20% of its staff; Intel Corp. INTC, is reportedly set to lay off thousands of workers by the end of the month; and companies including Apple Inc., Oracle Corp., and Beyond Meat Inc., have also cut jobs, while Facebook parent Meta Platforms Inc., reportedly announced a hiring freeze last month.
A recent report by KPMG found 51% of CEOs polled said they are considering workplace reductions in the next six months.
Microsoft is scheduled to release quarterly earnings Oct. 25.
Microsoft shares have slumped nearly 30% year to date, compared to the 17% drop this year by the Dow Jones Industrial Average DJIA, +1.86%, of which it is a component.
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