Microsoft cuts its workforce before its 2022 report

Following a strategic realignment, Microsoft has reduced its workforce by 1%, or nearly 1,800 jobs affected group-wide. An announcement that comes a few days before the end of its 2022 financial year and the drop in forecast earnings per share from a KeyCorp analyst.

June 30 marked the end of Microsoft’s 2022 fiscal year, which publishes, as every year, its staggered accounts. This closure will have a bitter taste for several hundred employees of the group, the latter having announced the elimination of 1% of its workforce worldwide. Reported to the 180,000 employees of the publisher, this cut therefore concerns nearly 1,800 jobs.

“Today we notified a small number of employees of their termination,” a Microsoft spokesperson told CNBC in an email. “This is the result of a strategic realignment and, like all businesses, we regularly assess our business. We continue to invest in certain areas and to increase the workforce in the coming year”. The last wave of job cuts at the supplier dates back to 2017, carried out as part of an internal reorganization aimed at the time to “make changes intended to better serve its customers and partners”, said a spokesperson. of the group to AFP.

A lower income range

This announcement comes as Microsoft prepares to present its annual results on July 26, which it had revised downwards in early June, in particular concerning its revenue and profit forecasts for its 4th quarter of 2022, which ended at the end of last month. . The publisher has thus declared to expect quarterly revenues of between $51.94 billion and $52.74 billion against 52.4 and 53.2 previously. Earlier this week, Gartner warned that the decline in PC shipments in the third quarter (-13%) is affecting the Windows business of the American giant. Recently, a financial analyst from KeyCorp said he expected a slight drop in Microsoft’s earnings per share for the 1st quarter of 2023, to $2.46 versus $2.51.

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