Microsoft stated that the layoffs will lead to a charge of $1.2Billion in the second quarter fiscal 2023. This is a negative impact of 12 Cents per share profit.
Microsoft Corp announced Wednesday that it will cut 10,000 jobs in the third quarter fiscal 2023. This is the latest indication that layoffs are increasing in the U.S. tech sector as companies prepare for an economic downturn.
Microsoft stated that the layoffs will lead to a charge of $1.2Billion in the second quarter fiscal 2023. This is a negative impact of 12 Cents per share profit. Media publications reported Tuesday that there were layoffs. This follows reductions in last year.
Microsoft stated in July that only a few roles were being eliminated. Axios reported in October that under 1,000 employees had been laid off across multiple divisions. Satya Nadella’s company is also struggling with a slump on the personal computer market following a pandemic that lasted for many years. There was little demand for Windows and its accompanying software.
Microsoft must maintain its growth rates at Azure, its cloud unit, following several quarters in which the personal computer market was down. This follows a period of decline in Windows sales and Windows device sales. According to filings, the company had 221,000 employees full-time, 122,000 in the United States, and 99,000 internationally as of June 30.