Microsoft Corporation announced on Wednesday that it would eliminate 10,000 employees by the end of the third quarter of fiscal 2023. This news is the latest indication that layoffs are rising in the United States technology sector as corporations prepare for an economic downturn.
Microsoft stated that the layoffs would result in an expense of $1.2 billion during the second quarter of the fiscal year 2023. This would have a negative impact of 12 cents on the company’s profit per share.
The announcement of layoffs, which was made public by several media outlets on Tuesday, comes after some reductions were made the previous year.
Microsoft announced in July of the previous year that a small number of roles had been terminated. However, in October of that same year, the news site Axios reported that the corporation had laid off fewer than one thousand employees across numerous businesses.
The corporation that is helmed by Satya Nadella is also dealing with a decline in the market for personal computers as a result of a global boom that has now faded out, leaving little demand for its Windows operating system and the software that goes along with it.
After several quarters of a slowdown in the personal computer industry, which damaged sales of Windows and devices, Microsoft is under pressure to sustain growth rates at its cloud subsidiary Azure. This is due to the fact that Azure is its primary source of revenue.
According to the records, as of the 30th of June, the corporation employed 221,000 full-time employees, of which 122,000 were located in the United States and 99,000 were located in other countries.