Microsoft begins fiscal year 2023 with layoffs

A few days into its 2023 fiscal year, Microsoft announces layoffs. “Today we notified a small number of employees that their roles have been removed”a Microsoft spokesperson told Bloomberg and several US media. “This is the result of a strategic realignment and, like all companies, we regularly evaluate our activities. We continue to invest in certain areas and increase our workforce in the coming year. »

The Redmond giant, which employed 181,000 people in June 2021, clarified that these layoffs will affect less than 1% of the company, or potentially 1,800 employees. They will concern teams in all geographical areas, particularly in consulting and customer and partner solutions activities.

Microsoft had already curbed hiring for its Windows, Teams and Office businesses. The company says the layoffs are not motivated by the deteriorating economic situation. However, in June, it had revised downwards its revenue and profit forecasts for its fourth fiscal year (publication on July 26), justifying them by an unfavorable evolution of exchange rates.

The 15% drop in the PC market in the second quarter is obviously not good news for Microsoft. Nor the publication on Wednesday of a consumer price index in the United States, up 9.1%, which is likely to curb consumer spending and encourage the continuation of monetary tightening, which weighs down technology stocks.

Microsoft’s last layoff plan dated back to 2017 and was also announced at the very beginning of the year.

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