All you want to know about Microsoft's latest layoffs

Tech layoffs

by 5paisa Research Team Last Updated: Jan 19, 2023 - 10:51 am 3.2k Views

The global tech industry is continuing to lay people off. In the latest sign that things will continue to go downhill as far as jobs in the IT sector go, Microsoft Corp said on Wednesday it would cut 10,000 jobs by the end of third quarter of fiscal 2023. 

The layoffs come as the global tech sector braces for an economic slowdown. 

What are the financial implications of the layoffs?

The layoffs will result in a charge of $1.2 billion in the second quarter of fiscal 2023, representing a negative impact of 12 cents on per share profit, Microsoft said.

But hadn’t Microsoft announced layoffs earlier as well?

Microsoft said in July last year that a small number of roles had been eliminated, while news site Axios in October reported that the company had laid off under 1,000 employees across several divisions.

What are the other challenges facing the company?

Microsoft is grappling with a slump in the personal computer market after a pandemic boom fizzled out, leaving little demand for its Windows and accompanying software.

Microsoft is under pressure to maintain growth rates at its cloud unit Azure, after several quarters of downturn in the personal computer market hurt Windows and devices sales.

How many people does Microsoft employ?

The company had 221,000 full-time employees, including 122,000 in the United States and 99,000 internationally, as of June 30, according to filings.

Which other tech majors have announced layoffs?

Apart from Microsoft, nearly all the other tech companies including Google, Amazon, Twitter and Meta have said that they are letting go of thousands of employees worldwide.

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