Microsoft Corp. announced on Wednesday that it would cut 10,000 positions by the end of the third quarter of fiscal 2023, the most recent indication that layoffs in the American technology sector were accelerating as businesses prepared for an economic downturn.
According to Microsoft, the layoffs will result in a charge of $1.2 billion in the second quarter of fiscal 2023, which will have a negative effect of 12 cents on profit per share. Following certain cuts made last year, media outlets on Tuesday broke the news of layoffs.
Microsoft announced the cut of a small number of positions in July of last year, while a news site reported the layoff of fewer than 1,000 workers across many businesses in October.
The corporation led by Satya Nadella is also dealing with a fall in the personal computer market as a pandemic boom bursts, leaving little demand for its Windows and related software.
After the personal computer industry suffered for several quarters, Microsoft is under pressure to keep Azure’s growth rates up. This is because Windows and device sales were negatively impacted.
As of June 30, the corporation employed 221,000 full-time employees, including 122,000 in the US and 99,000 abroad, according to documents.
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