Microsoft is preparing to axe thousands of Jobs in the latest move by the biggest technology companies to reduce its workforce in the face of a slowing global economy.
As the majority of the world is still reeling from the economic turmoil of the last 3 years, it was learned that the US software giant could announce plans to cull a significant number of posts around the world within a matter of days.
Microsoft, which employs more than 220,000 people, including a good number in Nigeria (both physically and remotely), is said to be contemplating cutting roughly 5% of its workforce, which if accurate would equate to approximately 11,000 jobs.
It was also unclear how many UK-based positions would be affected. The company which has bet heavily on the growth of cloud computing and now has a market capitalization of $1.78 trillion, is set to report second-quarter earnings next week.
If finalized, an announcement about headcount reductions is likely to be made before Microsoft’s chairman and CEO, Satya Nadella, updates investors on the company’s financial performance on January 24.
Read also – Nigeria Welcomes Microsoft’s $200m Investment
Microsoft warned of a slowdown in its cloud computing business in October, acknowledging that major corporate customers were rethinking their spending in response to economic challenges.
“In a world facing increasing headwinds, digital technology is the ultimate tailwind,” said Microsoft CEO Satya Nadella in October.
“In this environment, we’re focused on assisting our customers in doing more with less, while investing in long-term growth opportunities and managing our cost structure with discipline.”
Under Mr. Nadella’s leadership, the company has been transformed, though recent quarters’ earnings have been hampered by the strength of the dollar.
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