Source: Bloomberg
Summary
Microsoft Corp. is cutting about 1% of its workforce, affecting more than 500 people, as the software maker becomes the latest technology giant to reduce staff amid a deteriorating global economic outlook. The move comes as the company is shifting its focus to artificial intelligence and cloud computing. Microsoft has about 180,000 employees worldwide. The company reported a decline in personal computer sales and a slowdown in its Azure cloud-computing business in its latest quarterly earnings report.
Our Reading
The announcement sounds ambitious. Microsoft is cutting 1% of its workforce, which is roughly 500 people, to focus on AI and cloud computing. Because that’s exactly what the company needs – more AI. The move is part of a larger trend in the tech industry, where companies are reducing staff due to economic uncertainty. Microsoft joins the likes of Amazon, Google, and Meta in the layoffs club. Because “restructuring” is just a nice way of saying “we hired too many people”.
Author: Evan Null
