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Microsoft Sacked 1000 Workers Amid Recession and Decrease in Product Demand

Tech giant and American multinational company, Microsoft, has fired about 1000 employees in its latest and third round layoff since the beginning of the year.

While Microsoft planned to retrench about 1 percent of its workforce, the recent layoff cut across many countries around the world. 

Some of the affected staff, including a long-term employee of the company who was the product manager to the Chief Technology Officer, took to Twitter to announce the disappointing disengagement. 

While explaining the reasons for the layoff, Microsoft noted in a statement that the company had to make structural adjustments as needed. 

“Like all companies, we evaluate our business priorities on a regular basis. We will continue to invest in our business and hire in key growth areas in the year ahead”, the statement partly read. 

Investors King learnt that several tech companies such as Wipro, Tech Mahindra, Intel, Google and Infosys among others have laid-off employees or planning to do so. Similarly, a number of tech companies have resorted to freezing the hiring process.

Last week, the Times Magazine reported that Intel is planning a major reduction in headcount, likely numbering 20,000. The layoff is a result of the steep decline in demand for PC processors.

The widespread cut in workforce mostly in the tech companies is coming amid the recession and the decrease in product demand. 

It could be recalled that last month, Apple abandoned efforts to increase production of its iPhone 14 lineup by 6 million units after it witnessed low market demand. 

Meanwhile, the shares prices of many of the tech companies have also dropped significantly on the stock exchange. 

For instance, Microsoft has seen its share price drop by 30 percent from its height. Apple’s share has declined by more than 15 percent, Tesla has lost more than 30 percent, Adobe has shed more than 50 percent, Facebook has lost about 60 percent, Paypal has shed almost 70 percent, Snapchat has lost more than 80 while Amazon has lost around 38 percent. 

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