Almost 1,000 Microsoft employees have lost their jobs as a result of the technology company’s revenue falling short of analysts’ forecasted turnover.
Less than 0.5 percent of Microsoft’s 221,000 employees worldwide were fired, and this came almost four months after the corporation announced a downsizing strategy in July.
Prior to the anticipated crisis for the US economy, the corporation, founded by Bill Gates, the fifth richest man in the world, had announced that less than 1% of its staff will be let go.
Microsoft officials explained the circumstance that led to personnel reductions by stating, “Like other businesses, we examine our business goals on a regular basis and make structural modifications accordingly.
“We will continue to invest in our business and hire in key growth areas in the year ahead.” The company’s representatives said, according to Daily Mail on Wednesday.
The sack affected various divisions at Microsoft, from Microsoft Strategic Missions and Technology organization to Xbox console gaming division.
Microsoft is battling with saving its earnings, considering the company was projected to generate $52.4 billion in the second quarter of this year, but it reported a turnover of $51.9 billion.
Gates’ company had significantly profited from the work-from-home model companies adopted during the COVID-19 lockdown, but since firms are back to office, demands for its products or services have dropped, with soaring inflation also playing a role in the decrease.
Demands for Microsoft share have also plummeted in the stock market, with the share of the firm falling by -29.36% in value year-to-date, from $336.32 per share to $236.48.
This indicates investors are snubbing Microsoft’s stock in the capital market, resulting to the company’s market valuation falling to $1.76 trillion as at October 19, 2022, from $2.53 trillion as of December 31, 2021.
Over $770 billion was wiped off its market value during the period of ten months.
