Microsoft slashes some jobs amid slowing revenue growth
Microsoft has cut some jobs after it faced slower revenue growth last quarter.
According to Axios, the tech giant slashed around 1,000 jobs across a variety of sectors.
A spokesperson for Microsoft told The Hill that “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,” the spokesperson said.
Microsoft had employed about 220,000 people at the end of June.
The news comes after the tech giant posted slower than usual revenue growth in the fourth quarter of the fiscal year, citing “evolving macroeconomic conditions and other unforeseen items.”
On Tuesday, shares of Microsoft fell slightly after the layoffs were reported. First quarter results for Microsoft’s next fiscal year is set for release on Oct. 25.
Economists have warned of a likely recession as the U.S. struggles to contain a 40-year high inflation rate and the Federal Reserve raises interest rates in an attempt to tamp down rising prices.
Several large companies have cut jobs, though the unemployment rate remains low. In August, Snap, the parent company of Snapchat, announced plans to cut 20 percent of its workforce.
Walmart also cut hundreds of corporate jobs after it said inflation was cutting into its profit margin.