Microsoft to Cut Nearly 1,000 Jobs

Microsoft confirmed on Monday that the company will cut hundreds of jobs, as the software maker’s revenue is expected to slow thanks to weaker sales of Windows licenses for PCs.

“Like all companies, we evaluate our business priorities on a regular basis, and make structural adjustments accordingly,” a Microsoft spokesperson told CNBC.

“We will continue to invest in our business and hire in key growth areas in the year ahead,” the spokesperson announced.

Monday’s announcement comes three months after Microsoft said it trimmed less than one percent of employees.

In July, Microsoft called for about ten percent revenue growth in the fiscal first quarter, which is slower than it has been in more than five years. The company will be announcing earnings on October 25th.

Microsoft latest tech company to cut jobs

Axios, which reported the layoffs earlier on Monday, said the cuts impacted fewer than a thousand people and cited an unnamed person.

The company is apparently the latest major tech giant to cut staff amid fears of a looming recession.

Snapchat parent Snap recently announced plans to slash twenty percent of its staff. Intel Corp. is reportedly set to lay off thousands of workers by the end of the month.

Companies such as 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 that fifty-one percent of CEOs polled said they are considering workplace reductions in the next six months.

Last year, Microsoft, founded by Bill Gates and Paul Allen on April 4, 1975, overtook Apple to become the world’s most valuable company.

Its best-known software products are the Windows line of operating systems and the Microsoft Office suite. Its flagship hardware products are the Xbox video game consoles and the Microsoft Surface lineup of touchscreen personal computers.