I believe workers in the Technology Industry thought layoffs were behind them. Unfortunately, last year saw many tech companies cut thousands of jobs, like Meta, Twitter, Lyft, and Amazon to name a few. Now there is a Microsoft layoff looming for its thousands of employees according to Sky News. At least 11,000 job could be cut, but there are sources who believe the number could be higher than that.
Microsoft Layoff Looming: What We Know Currently
The Microsoft layoff looming for its 220,000+ employees around the world will affect the global workforce. There isn’t estimates how many jobs the company will eliminate in each country it operates. However, Sky News reports the UK has about 6,000 employees. If I had to guess I believe most of the job cuts would probably center around America since the company has a majority of its workers in that country. And America was hit hard by the Technology Industry layoffs last year.
What’s The Cause Of The Layoff?
The main reason for the Microsoft layoff looming is the global recession. That’s the same reason the other tech companies gave last year. In addition to that reason, Microsoft “warned in October of a slowdown in its cloud computing business, an acknowledgement that major corporate customers were re-evaluating spending in response to economic challenges.” And that is true as many companies are currently reevaluating their spending for cloud apps and running their services in the cloud as they seek to cut their expenses. Cloud computing costs can become costly quickly.
When Are The Layoffs Set To Start?
The Sky News’ report didn’t give a timeline. However, The Verge states its sources told them the layoffs are to start tomorrow. Why tomorrow? Microsoft’s quarterly earnings happen next week on January 24th. If the earnings aren’t great then the CEO, Satya Nadella, needs to have a plan already in motion to help save the company money. And layoffs are usually the first choice. Especially if a company has many bloated departments.