More tech companies are gearing up for massive job cuts. They are thus preparing for the effects of economic problems in the world. The measure, according to Microsoft’s announcement, will reduce earnings per share by 12 cents. The company’s shares responded to the announcement with a slight rise.
The layoffs are to end at the end of the third financial quarter, i.e. by the end of March. It will account for the extraordinary costs in the second financial quarter, which ended in December.
Last July, Microsoft announced that it was cutting a smaller number of jobs. News website Axios reported in October that the company had laid off nearly 1,000 employees across several divisions.
Under the leadership of Satya Nadella, Microsoft is struggling with a slump in the personal computer market. Although the pandemic revived it, there is now weaker demand for Windows business software and related software.
Plans to reduce the number of employees have already been presented by a number of large technology companies in recent months, including the online store Amazon and the company Meta Platforms. He is the owner of the social networks Facebook and Instagram or the communication service WhatsApp.
