Microsoft to Cut Thousands of Jobs

Microsoft is about to cut thousands of jobs worldwide in response to a global economic downturn. The software giant is following similar moves by other companies across the sector.

According to media reports, Microsoft is preparing to axe around 5% of its total workforce of more than 220,000, which would equate to around 11,000 jobs. The company is due to announce its quarterly earnings next week, and sources believe details about cuts could be released before then.

If the report is accurate, Microsoft would be the latest major tech company to slash employee numbers, following a hiring spree in the sector instigated by the COVID-19 pandemic. Amazon this month announced plans to cut 18,000 jobs, while Meta Platforms and Twitter made major cuts at the back end of 2022.

Microsoft CEO Satya Nadella warned in October 2022 of a need to manage its cost structure and respond to increased headwinds. It is also fighting to keep a proposed acquisition of games publisher Activision Blizzard alive, with regulatory scrutiny against the deal increasing.