Microsoft today announced plans to cut 3% of its global workforce. The most recent headcon for the company thought of having around 228,000 in the last June, which translates into 6,840 firing.
The latest cuts back to about 10,000-confusing parj in 2023 and a small round of firing in January this year. The subsequent Kall was called “demonstration” based by Microsoft.
“When people are not performing, we take appropriate action,” Microsoft said in January. However, the company told CNBC that the latest 3% decrease would not be performing.
To some extent, this step follows Microsoft’s reporting compared to the expected profits of $ 25.8 billion in the most recent quarter. However, those figures cover a period that is before the uncertainty raised by the ongoing tariff migration of the Trump administration.
Microsoft says that the cut is an attempt to reduce the layers of management. But beyond this, it is difficult to know if the inspiration is probably beyond hedging against tariff-powered recession.
This is not the first time we have talked about Microsoft firing people, as in April this year we covered the firing of employees who publicly continued the company’s Israeli army supply to the Israeli army. It is one of the main reasons for the presence of Microsoft in the boycott, partitions and restrictions (BDS).
All this follows a fairly severe period for Microsoft’s gaming business. Last year, around 2,600 staff members were lost in Microsoft’s Xbox Division and its newly-known activities Blizzard subsidiary, which was part of a widespread recession for the sports industry.
Sports industry trimmed tracker estimates that 14,600 job loss in 2024After 10,500 in 2023. The total currently is at 2,200 for 2025, which seems like progress, if there is hardly any assurance to anyone who has lost its role.
Microsoft Stock is currently trading at a high level for 2025, at its peak in July last year. Therefore, the company looks overall healthy and it is at the time of writing The world’s most valuable company with total market capitalization of more than $ 3.3 trillionBut there is not enough cash, it seems, to catch those workers.