Microsoft (NASDAQ:MSFT) layoffs are on the way as the tech giant prepares to cut even more jobs in 2023.
Microsoft has confirmed that it will be laying off employees but doesn’t say how many will be affected by the action. However, a recent filing reveals that the company is cutting 276 people in Washington, which is where its headquarters is located.
Former employees have been speaking about the job cuts, with many of them appearing to be salespeople and customer success representatives. A Microsoft spokesperson for the company told CNBC that: “Organizational and workforce adjustments are a necessary and regular part of managing our business.”
This isn’t the first time that Microsoft layoffs have been announced in 2023. The company cut a massive 10,000 jobs back in January. However, it is worth noting that these new job cuts come shortly after the start of MSFT’s 2024 fiscal year.
What’s Behind the Microsoft Layoffs?
While Microsoft doesn’t give a clear explanation for the layoffs, there are a few potential possibilities. This could be further downsizing following increased hiring throughout the Covid-19 pandemic. That saw many tech companies bring in help to meet the demand of customers going digital due to lockdowns.
Another possibility is that MSFT is preparing for a worsening economy. There’s no denying the months of inflation have been weighing on companies and consumers alike. It’s possible these Microsoft layoffs are part of its plan to cut costs during more turbulent times.
No matter the case, MSFT stock isn’t largely affected by today’s news. The company’s shares are only down slightly as of Tuesday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
