Microsoft is apparently in the process of slashing thousands of jobs across multiple departments as part of a restructuring effort. Reuters reported that up to 6,000 positions could be eliminated; while no details on timing have been made public yet, it’s expected that an official announcement will follow shortly.
As Microsoft’s fiscal year nears its closing, the company is reportedly restructuring their departments and personnel by making reductions in staff across divisions such as customer and partner solutions, engineering, and consulting. These layoffs are part of an organizational realignment intended to better align business groups with roles that will benefit Microsoft’s long-term success.
Microsoft’s recent decision to reduce its workforce by 5%, or 11,000 jobs, is reflective of a broader trend among tech companies as investors become increasingly worried about an impending recession. Microsoft’s revenues have been slowing down and lack any discernible pattern in regards to product division or geography. Sky News has reported that these job cuts are expected to be executed soon, signifying the gravity of the financial climate at present time.
The Morningstar analyst Dan Romanoff expressed his opinion that –
“From a big picture perspective, another pending round of layoffs at Microsoft suggests the environment is not improving, and likely continues to worsen.”
This week, Bloomberg reported that the company will reduce its engineering divisions by a larger number than in previous rounds of layoffs this year. In addition to other Big Tech giants such as Oracle and Amazon, Twitter, Tesla, and Meta have all made significant cuts to their job market – ranging from thousands of downsized positions to merely reducing engineer hiring goals by up to 30%. The tech industry is being impacted by massive changes in 2020.
Microsoft is restructuring its workforce and cutting expenses to remain a competitive force in the industry. Unfortunately, this means a small percentage of Microsoft employees will lose their jobs. Nonetheless, these layoffs could have far-reaching implications for the future of Microsoft’s products and services.
Microsoft’s recent filings report an impressive presence of 221,000 full-time employees worldwide. Of this figure, 122,000 are based in the U.S., with 99,000 workings internationally for the company.
Microsoft’s cuts and restructuring efforts are sure to make a lasting impact on the tech industry.
It remains to be seen what Microsoft’s new organizational changes will look like, but one thing is sure: the decisions made in the coming days could have a big impact on its future operations.
Shivendra Tiwari is an Engineer and an MBA in Marketing. He is the Content head at Marketing91 and a thorough Online Marketing enthusiast. Shivendra loves to follow different brands and study their Business and Marketing tactics.