Microsoft is navigating troubled waters. Between the post-covid impacts and the impact of inflation on resources, the company is in a difficult situation. It is therefore preparing to lay off a thousand employees. The public attributes this initiative to the significant drop in the price of their shares.
A growth crisis?
Since the beginning of the year, the value of Microsoft shares has fallen by about 30%. A blow for the American giant, which suffered a slowdown in the PC market. Sales of Windows licenses are lagging. The company plans to release a quarterly report very soon, where it will register annual growth of less than 10%.
The cut affects several sectors of activity
Business Insider and Axios argued that Microsoft will soon have to adjust its structure. This decision is in line with the recession plan announced on Monday, which has forced the company to lay off more employees. The reform specifically targets divisions that are supposed to include Xbox and the Edge browser, including the Technology Branch and the Microsoft Strategic Missions and Technology organization.
On the other hand, the Mission Engineering hardware team as well as the legal department will likely be affected as well. ” Like any other company, we continuously review our business priorities and make structural adjustments accordingly. We will continue to invest in our business and hire in key growth areas over the next year ” says a Microsoft representative Business Insider.
Microsoft employs nearly 180,000 people worldwide. With a percentage reduction in staff of 1%, 1,800 positions will be eliminated. However, Microsoft seems to have made up its mind and is receiving criticism, notably from New Yorkers, US senators and even the British government.