Microsoft is preparing to reduce its workforce by 5 percent which will result in job losses for thousands of employees, according to reports. The software giant has over 220,000 employees, a reduction of 5 percent of the workforce could mean 10,000 layoffs.
Data shows that the company’s revenue growth has slowed in recent quarter. The job cuts are expected to be announced as early as Wednesday, January 18, ahead of the firm’s quarterly earnings.
Microsoft job cuts
The firm plans to cut a number of jobs from the engineering division on Wednesday, according to a person familiar with the matter, Bloomberg News reported.
Last year, Microsoft cut 1 percent of its workforce, making the expected layoffs of 5 percent, a significantly larger move.
This comes after the company announced its new unlimited time off policy, employees who have not used their current vacation balance will get a one time pay-out following which unlimited ‘discretionary time off’ will be applicable.
Microsoft CEO, Satya Nadella in an interview with CNBC said that Microsoft was not immune to global challenges and explained that the next two years will probably be the most challenging, he also highlighted the recession, pandemic, and other ways that firms were affected.
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