Microsoft has always been one of the few tech giants that have been hailed as recession-proof, and yet the company retrenched some 1,000 people recently.
Axios reported that the layoffs were across regions and offices globally.
“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,” said Microsoft.
The job losses which were announced on Oct 17 affected less than one-half of one per cent of the company’s 221,000 employees.
The company already cut back on staff in July this year. In an article by Fortune, Mizuho Securities managing director for tech, media and telecom sector trading Jordan Klein said the software giant could therefore be the next shoe to drop.
“Post AMS and the much weaker PC read-through last week, I see growing earnings risk facing Microsoft in the coming quarters,” said Klein.
In July, the software developer nabbed a flagship deal with Netflix to support its new lower-priced ad-tier subscription. Last week, it partnered with Meta to offer a more immersive experience for corporate customers using Mark Zuckerberg’s upcoming Quest Pro virtual reality headset, complete with security and compliance features.
Microsoft saw huge growth during the pandemic as consumers and businesses turned to its products as they spent more time at home.
This year, tech companies are seeing a slump, with Amazon shares falling about 30% and Meta dropping 61%.
According to a Seattle Times report, Microsoft is currently in the process of acquiring video game maker Activision Blizzard for $69 billion, pending regulatory approval. Microsoft is also the maker of Xbox and owns other studios such as Bethesda, a subsidiary of ZeniMax Media.
The company disclosed in an August antitrust filing that Sony’s PlayStation 4 outsold Xbox One by double.
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