Microsoft is laying off nearly a thousand employees due to slow revenue growth

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After letting go of 1% of its workers three months ago, Microsoft confirmed that another wave of layoffs happened across its different divisions this week.

“Like all companies, we evaluate our business priorities on a regular basis, and make structural adjustments accordingly,” a Microsoft spokesperson told CNBC on Monday. “We will continue to invest in our business and hire in key growth areas in the year ahead.”

According to Microsoft, the decision aims to address the expected slow revenue growth of the company due to weak Windows PC license sales. It is unclear how huge the impact of the layoff is, but Axios, one of the first to report the news, said that a source calculated it could be under a thousand individuals. Additionally, it reportedly covers different teams, levels, and employees globally.

Microsoft is not the only tech company to take this path. In May, Meta announced its plans to slow hiring due to its slow revenue growth during the first three months of 2022. In September, Meta CEO Mark Zuckerberg mentioned plans o freeze hiring and trim down its costs. Netflix has also been facing a challenging year, which not only led it to lay off hundreds of its employees but also to push for a remedy to resolve its password-sharing issue affecting its revenue.

According to Tracker, a total of 187,195 workers from 1,437 companies have lost their jobs since the start of the pandemic. As of writing, 91,204 tech startup employees make up that number in 2022. And with the global economy still dwindling, the number might continue to swell as tech companies try to keep their businesses afloat amid the challenges they are facing.

More about the topics: Layoffs, microsoft