Reuters reports that the company is under pressure to maintain the growth rate of its cloud unit Azure. For the past few quarters, the personal computers market has been hit by the recession and this has affected the sales of Microsoft’s Windows and devices. Microsoft will announce the results of the last quarter on January 24. The company had around 2,21,000 workers at the end of the June quarter last year. Of these, about 1,22,000 were in the US and the rest in other countries. The company’s decision to lay off indicates that workforce cuts may continue in the tech sector.
Recently, Microsoft’s Chief Executive Officer Satya Nadella warned of challenges for the tech sector for two years. He said that Microsoft will also have to face these challenges and tech companies need to become efficient. before this amazon And Meta, which runs the social media site Facebook, also laid off a large number of workers. Billionaire Elon Musk fired half of the company’s staff after gaining control of microblogging site Twitter.
More than 11,000 employees have been laid off from Meta. This is about 13 per cent of the total workforce of the company. This was one of the biggest layoffs in tech companies last year. meta The company is facing difficulties like rising cost and weakness in advertisements. The business of tech companies grew rapidly during the pandemic and its impact was also seen on their valuations. The valuations of these companies have come down significantly in the last year due to increase in inflation and interest rates. Mark Zuckerberg, Meta’s chief executive officer, told employees in a message: “Weak macroeconomic conditions, increased competition and reduced advertising have resulted in our revenue well below expectations. I made a mistake and I take responsibility for it.” ”