Microsoft lays off under 1,000 employees across multiple divisions

midian182

Posts: 8,492   +105
Staff member
What just happened? Microsoft has become the latest tech giant to lay off employees, again, as the economic downturn impacts even the most established industry titans. The company cut jobs across multiple divisions and locations yesterday in a move Microsoft has defined as "structural adjustments."

Axios writes that while Microsoft didn't confirm how many people it let go this week, fewer than 1,000 employees were laid off. A spokesperson told the publication, "Like all companies, we evaluate our business priorities on a regular basis, and make structural adjustments accordingly. We will continue to invest in our business and hire in key growth areas in the year ahead."

Insider notes that social media posts on sites such as Twitter and Blind suggest the cuts covered the Xbox gaming division, Microsoft Strategic Missions and Technology, Experiences and Devices, legal, and others. KC Lemson, a Microsoft veteran and a product manager in the office of the Chief Technology Officer, tweeted that she lost her job on Monday.

Interestingly, Microsoft confirmed in September that it would add another 1,000 workers to its Chinese operations and upgrade its campuses in the country over the next few years.

The looming threat of a US recession, which Bloomberg now believes is 100% certain to happen within the next 12 months, has seen the tech sector slow down hiring and lay off staff in recent months. Microsoft fired around 1,800 employees—less than 1% of its total workforce—in July and removed some job listings.

Google has also been tightening its belt. It pointed to the "uncertain global economic outlook" for its decision to pause hiring and re-deploy resources to high-priority areas earlier this year. Facebook parent Meta has also been targeting low-performance staff as it looks to streamline operations after the company recorded its first-ever revenue decline in July, the same month GameStop announced layoffs.

Snap said it would be cutting 20% of its 6,000-strong workforce and discontinuing products to combat financial challenges in August, while trading app Robinhood has made two rounds of cuts this year.

Crypto-related businesses have been hit even harder over the last few months. The flagging economy combined with the crypto winter saw several industry names go bankrupt or, in the case of Coinbase and OpenSea, slash employee numbers.

Masthead credit: Turag Photography

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TheRealSCDC

Posts: 500   +865
I wouldn't want to work in tech. They are always hit HARD when the economy slows. Got out of it after the big 2009 recession when I got laid off.

Been much happier. Things are about to get very rough!
 

gabelogan1324

Posts: 56   +66
The recession is already here. Ppl want to redefine what it is, like a lot of other things over the years, but it’s here already. Two quarters of negative gdp means recession.

I work in tech but it just goes to show a job is a liability when these times happens.
 

dangh

Posts: 856   +1,449
I wouldn't want to work in tech. They are always hit HARD when the economy slows. Got out of it after the big 2009 recession when I got laid off.

Been much happier. Things are about to get very rough!
Every profession is hit hard when economy slows. Builders, services, people just spend much less money. So yeah, I'm fine with working in tech, that's what I like and there is still enough of job on the market, if you know what you're doing.
 

MyIOnU

Posts: 136   +297
I wouldn't want to work in tech. They are always hit HARD when the economy slows. Got out of it after the big 2009 recession when I got laid off.

Been much happier. Things are about to get very rough!

I do not know what you are talking about. All jobs get hit hard with recession; however, IT is still much better than others.
But then it all comes down to your role and level. If you are in level that is easy to fill when needed, you will be the first to get cut.
 

Theinsanegamer

Posts: 3,959   +7,013
White collar is getting hit hard. Companies have now figured out that, with work from home and newer software automation, they can cut a LOT of fat that was previously thought necessary.

A lot of those work from home guys are about to find out how cheap their labor truly is, when they are competing with the likes of arkansas and mexico.
Every profession is hit hard when economy slows. Builders, services, people just spend much less money. So yeah, I'm fine with working in tech, that's what I like and there is still enough of job on the market, if you know what you're doing.
Big tech hits HARD on recessions, they usually end up with tons of fat to trim off in recessions, far worse then, say, manufacturing or service jobs. What we're seeing right now is almost a reverse NAFTA, where the blue collar jobs are mostly safe while the white collar get chopped as companies desperately cling onto COVID tier earnings reports.
 

kiwigraeme

Posts: 1,400   +1,040
I do not know what you are talking about. All jobs get hit hard with recession; however, IT is still much better than others.
But then it all comes down to your role and level. If you are in level that is easy to fill when needed, you will be the first to get cut.

Pharmacies in poor areas of town do well in recessions - if subsidized prescriptions by govt.