- A lot of big companies have been spotted laying off a big number of workers in a short time such as Amazon, Twitter, and HP.
- The reason for the recent company layoffs seems to be because of growing economic uncertainty after the pandemic.
- It is rumored that Microsoft is also going to follow the example and reduce the number of people it has in its workforce.
In recent years, especially following the pandemic, many large companies have been laying off workers. The reasons for these layoffs vary but often include growing economic uncertainty. Microsoft, which had approximately 221,000 full-time employees globally, is rumored to be considering eliminating about 5% of them, which, if true, would represent about 11,000 jobs.
“Do more with less”
Chairman and Chief Executive Officer of Microsoft, Satya Nadella, said in a 2022 earnings release post:
« In a world facing increasing headwinds, digital technology is the ultimate tailwind. In this environment, we’re focused on helping our customers do more with less, while investing in secular growth areas and managing our cost structure in a disciplined way. »
Unfortunately, the rumors of Microsoft laying off 220,000 employees came to a couple of months after this earnings release post. Many big companies have been announcing huge layoffs in a short time, such as Amazon which was seen laying off a massive chunk of people totaling 18,000 jobs, Twitter with thousands after Elon Musk acquired the company, and 6,000 no longer working at HP.
In most cases, layoffs can also ripple effect on the local economy, as spending decreases and businesses suffer. This can lead to even more job losses and a further decline in the standard of living for everyone. In 2022, tech layoffs seem to have increased by 649% over the previous year.
If a workforce reduction plan is implemented, Microsoft is anticipated to disclose specifics in the upcoming week prior to its financial performance investor update.