Wednesday, January 18th 2023

Microsoft to Reduce its Workforce by 5%, Almost 11,000 Jobs Impacted

Amidst the global economic downturns, Microsoft is reportedly joining other tech giants in reducing the amount of the company's working staff. According to Sky News, citing its sources, Microsoft will lay off as many as 5% of its workers. The company's massive team of over 220,000 employees will affect a large group estimated to be close to 11,000 people. In addition, Sky News' Wall Street Analyst source suggests that the people familiar with the matter would not be surprised if the reported figure is higher. If finalized, the decision is expected to be made official by Microsoft's chairman and CEO, Satya Nadella, on January 24.

The company's current market capitalization is $1.79 trillion, making it one of the world's most valuable companies. However, more than the investment in expanding Azure cloud services is needed to offset the stagnating consumer segment where Microsoft dominates with its Windows and Office services, so the company is forced to cut a part of its workforce. We don't have exact details on which segment is getting the highest deduction in staff; however, we expect to hear more at the company's Q4 2022 results call on January 24.
Source: Sky News
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28 Comments on Microsoft to Reduce its Workforce by 5%, Almost 11,000 Jobs Impacted

#1
mb194dc
GS yesterday. Economic issues set to gather pace?

What makes sense for individual corps is poison for the whole economy.
Posted on Reply
#2
FreedomEclipse
~Technological Technocrat~
Probably cutting staff in prep to buy activision.
Posted on Reply
#3
neatfeatguy
They already reported job cuts 3 or 4 months ago, but it was only 1,000 or so.

After this round, do you think they'll have anyone left in their QC department?
Posted on Reply
#4
Chaitanya
Other day saw news of Google backed Startup shedding its work force by 20% or so, everyday there are news of tech companies lay offs. 2023 is going to be the year of bloodbath for tech sector.
Posted on Reply
#5
FierceRed
neatfeatguyThey already reported job cuts 3 or 4 months ago, but it was only 1,000 or so.

After this round, do you think they'll have anyone left in their QC department?
You think Microsoft had a QC department? :D
Posted on Reply
#6
64K
I feel bad for the thousands getting laid off. I am under the impression that jobs aren't easy to come by these days. 2023 is going to be a hard year for a lot of people.

The fear of a serious global economic downturn has a domino effect. It causes consumers to cut back on spending which causes companies to have less revenue which results in further layoffs.
Posted on Reply
#7
Unregistered
Wonder why they don't lay-off they overpaid executive.
They always praise them whenever revenue is (which due to the people actually working, and economic fluctuations), it stands to reason they should take the blame when it's the opposite.
#8
64K
Xex360Wonder why they don't lay-off they overpaid executive.
They always praise them whenever revenue is (which due to the people actually working, and economic fluctuations), it stands to reason they should take the blame when it's the opposite.
Or at least cut back on the ridiculously lavish bonuses for CEOs. Bobby Kotick (Activision CEO) stands to get a 375 million dollar bonus this year when Microsoft completes it's deal to buy Activision.
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#9
Unregistered
64KOr at least cut back on the ridiculously lavish bonuses for CEOs. Bobby Kotick (Activision CEO) stands to get a 375 million dollar bonus this year when Microsoft completes it's deal to buy Activision.
I guess the government should intervene and limit this kind of things, but wait the US government is one of the most corrupt government in the world, hell it's even legal.
#10
InVasMani
Xex360I guess the government should intervene and limit this kind of things, but wait the US government is one of the most corrupt government in the world, hell it's even legal.
LSD is 85 years old what US government corruption don't you speak of.
Posted on Reply
#11
ThrashZone
Hi,
Only priorities ms has is pushing onedrive storage/ office and xbox yearly subscriptions
They don't need a lot of people to do that
Hell most have been working from home for years only question is, have they been using the dreadful teams app all this time :laugh:
Posted on Reply
#12
Wirko
64KOr at least cut back on the ridiculously lavish bonuses for CEOs. Bobby Kotick (Activision CEO) stands to get a 375 million dollar bonus this year when Microsoft completes it's deal to buy Activision.
To give some perspective to this amount of money, which is hardly comprehensible to most people: how much does a very good, hard working, innovative, successful engineer make in the US? Something like $200,000? 4 million if you can survive at such a job for 20 years? 375 / 4 = .........
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#13
zlobby
It's a sign that a top-heavy company's management need to keep their salaries intact.
FierceRedYou think Microsoft had a QC department? :D
We know for a fact they DON'T! Patch after patch we only hear excuses.
ChaitanyaOther day saw news of Google backed Startup shedding its work force by 20% or so, everyday there are news of tech companies lay offs. 2023 is going to be the year of bloodbath for tech sector.
Remember, ol' Muskie did it before it was cool!
Posted on Reply
#14
cvaldes
FierceRedYou think Microsoft had a QC department? :D
As far as I can tell, the Windows QC department was eliminated circa 2015. :p

A skeleton QC team remains for Office.

Today's Microsoft is focused on their Azure and Xbox businesses.
Posted on Reply
#15
PrEzi
Hey !! I've got an idea! MS should fire all their testers and whole QC departments and rely only on the "insiders" and normal (beta-tester) users!
Oh...wait.... ;-)
Posted on Reply
#16
Easy Rhino
Linux Advocate
Like other tech companies, M$ hired waayy to many people when the pandemic hit.
Posted on Reply
#17
trsttte
64Kwhen
Better change that to *** if ***
Posted on Reply
#18
Halo3Addict
Easy RhinoLike other tech companies, M$ hired waayy to many people when the pandemic hit.
Agreed. This isn't a sign of recession, this is just course correction for the massive amount of people big tech hired. There was no way it was going to be sustainable as consumer spending inevitably slowed. Still lots of companies hiring, at least in the US.
Posted on Reply
#19
StellarShots
FierceRedYou think Microsoft had a QC department? :D
:D
Posted on Reply
#20
ssdpro
It is always ugly when a USA company has to lay people off. In China, when Apple has layoffs it means a child gets to go to school and see the sun - beautiful.
Posted on Reply
#21
Chomiq
Some of the devs from their game studios also got laid off.
Posted on Reply
#22
n-ster
They went up 40K last year
Posted on Reply
#24
ThrashZone
P4-630www.tomshardware.com/news/windows-10-microsoft-ends-license-sales
Hi,
Not sure why anyone would pay ms prices for an os ..10-11 "or office suite" which is north of freaking insane at 140.us for sheep home version and 200.us for pro :laugh:

So yeah 10.us+- at TPU godeal24 it is, there are many other sites also I've used in the past besides them that were a fraction ms charges ;)

www.techpowerup.com/forums/threads/godeal24-unveils-the-2023-new-year-flash-sale-jaw-dropping-discounts-on-software.303156/
Posted on Reply
#25
P4-630
ThrashZoneHi,
Not sure why anyone would pay ms prices for an os ..10-11 "or office suite" which is north of freaking insane at 140.us for sheep home version and 200.us for pro :laugh:

So yeah 10.us+- at TPU godeal24 it is, there are many other sites also I've used in the past besides them that were a fraction ms charges ;)

www.techpowerup.com/forums/threads/godeal24-unveils-the-2023-new-year-flash-sale-jaw-dropping-discounts-on-software.303156/
They may end selling 10 keys as well..
Posted on Reply
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