Microsoft Lays Off Nearly 1,000 Employees: Reports

US tech giant Microsoft Corp. has reportedly let go of employees this week, making it the latest US tech firm to reduce its workforce or slow the hiring pace amid the global economic downturn.

A source with knowledge of the matter stated that Microsoft laid off nearly 1,000 people across certain divisions, impacting less than 1% of the more than 220,000 total workforce it reported in the second quarter.

Microsoft announced earlier its plans to cut some jobs, but the total number of people expected to be let go may still be higher eventually.

The report came after the Washington-based software maker trimmed less than 1% of its employees in early July. Microsoft in the same month also said it would call off many job openings.

Reflecting a Sluggish Economy by Slowing Hiring and Cutting Costs

Microsoft’s move aligns with other tech companies’ recent efforts to scale back hiring worldwide and reduce costs to cope with an underperforming global economy weighed by higher interest rates, surging inflation, and Europe’s energy crisis.

Meta Platforms Inc. and Salesforce Inc. are among the Silicon Valley groups that have slowed their hiring this year, while crypto exchange Coinbase Global Inc. and streaming giant Netflix Inc. have conducted layoffs.

Google LLC Chief Executive Sundar Pichai has also informed employees to expect slower hiring for the rest of this year.

In addition, Microsoft has forecast sluggish revenue growth as sales of Windows licenses for computers weakened.

In July, the company estimated revenue growth of 10% for the fiscal first quarter, slower than it has been in over five years.

A spokesperson stated that they evaluate their business priorities regularly, and make structural adjustments, accordingly. The spokesperson also said they would keep investing in their business and add people in critical growth areas in the year ahead.

Microsoft is set to release its quarterly earnings report on October 25.