Even with the decline in the last quarter attributable to several factors, Microsoft is in excellent health. Despite this, the firm announces a large layoff plan including at Xbox.
It’s not good to be an employee of a tech company lately. The giant Microsoft is restructuring and therefore parting with a large number of employees.
Microsoft fires just under 1,000 employees
After Meta and Tesla, Microsoft laid off about 1000 people. A number that the Redmond firm did not wish to confirm but which was advanced by Business Insider and Axios. A company spokesperson simply said the layoffs were due to “structural adjustments” and announces hiring in the coming year.
Like all businesses, we regularly assess our business priorities and make structural adjustments accordingly. We will continue to invest in our business and to hire in key areas over the coming year.
Different branches are affected such as Microsoft Strategic Missions and Technology but also Xbox, without knowing to what extent. Greg Chapman, lead architect of Azure, for example, was dismissed after more than 10 years. Some highlight the brutality of these dismissals, especially since some had just been recruited.
Causes ? Yes, like the drop in Windows license sales but above all the current context. Between rising costs, inflation and the energy crisis, the consequences of the war in Ukraine. The surplus of employees, hired during the COVID period, may also play a role.
This is all the more delicate since even if Microsoft’s last quarter shows a slowdown, the company is not to be pitied. The turnover was 51.9 billion dollars against 46.1 billion dollars (+ 12%) compared to 2021. Then there is also the fact that the firm is waiting for the validation of their acquisition of Activision Blizzard for the trifle of 69 billion dollars.