microsoft corp (MSFT) announced it will lay off nearly 1,000 workers after profits plummeted. The Redmond, Wash.-based company announced in July that it plans to cut a number of jobs that make up less than 1% of its more than 200,000 employees.
The company did not explicitly state how many employees would be affected by the recent downsizing. However, almost 1,000 employees are said to be affected, Axios reported.
“Like all companies, we regularly evaluate our business priorities and make structural adjustments accordingly. We will continue to invest in our business in the coming year and hire in key growth areas,” a Microsoft spokeswoman said.
The move follows similar strategies at other tech companies, including Meta, Uber and Google. Meta said it would cut costs by at least 10%, while Uber announced hiring freezes last month. Meanwhile, Google recently announced that it would discontinue its Stadia service and redirect affected employees to other departments.
Following its latest earnings report in July, Microsoft CFO Amy Hood said the company would “slow the hiring rate to focus on key growth areas.”
Microsoft shares are down about 30% so far this year, according to the Nasdaq Composite Index. The company’s earnings growth slipped in June as it was hit by problems in its cloud business, falling video game sales and a rising dollar.
Microsoft shares were up $0.96, or 0.40%, at 2:30 p.m. ET Tuesday at $238.49.
https://www.ibtimes.com.au/microsoft-announces-layoffs-after-earnings-decline-1839659?utm_source=Public&utm_medium=Feed&utm_campaign=Distribution Microsoft announces layoffs after falling profits