Microsoft is preparing its biggest round of layoffs despite the current downturn

Microsoft Corp. plans. to cut jobs in several engineering divisions on Wednesday, according to a person familiar with the matter, joining the ranks of the technology giants that are growing as the industry prepares for a long-term decline in demand.

The size of the cuts was not known, but the person, who asked not to be identified citing confidential matters, said the reduction would be greater than in other phases of Microsoft last year. Those cuts affect less than 1% of the software giant’s workforce of more than 200,000.

Microsoft most recently cut its workforce in October and July, and eliminated open positions and stopped hiring in various groups. While technology peers like Amazon.com Inc., Meta Platforms Inc. and Salesforce Inc. Having announced thousands of layoffs over the past few months, Redmond, Washington-based Microsoft is now taking smaller steps to deal with a worsening global economic outlook and the potential for a prolonged slowdown. in demand for software and services.

A Microsoft representative declined to comment. The shares, which have fallen 23% over the past year, were little changed at $240.16 at 3:06 pm in New York on Tuesday. heaven NEwS earlier it was reported that the company plans to cut thousands of jobs, and Insider reported that Microsoft could reduce its recruitment staff by up to a third.

Microsoft is expected to post a sales gain of 2% in the fiscal third quarter when it reports earnings on January 24. That’s the slowest increase in revenue since fiscal 2017. Since then, the cloud-computing business Microsoft’s growth rebounded, but even that business began to slow last year.

However, the company waited longer than many other technology leaders to cut staff. Cloud rival Amazon has laid off more than 18,000 employees – the biggest reduction in its history. Facebook Meta’s parent announced massive job cuts last fall, and the social network is in a frenzy Twitter Cut to Inc. almost half of its workers. Corporate cloud-software maker Salesforce laid off about 10% of its workforce earlier this month.

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