Microsoft announces 3rd round of layoffs as tech sector continues to bleed

Number of job cuts in tech sector has crossed 100,000 with major companies like Google and Toshiba also handing out pink slips

Microsoft has announced a new round of job cuts with the end of its financial year on June 30, according to a report by GeekWire.

These layoffs are a part of the tech giant's efforts to streamline its workforce.

Several LinkedIn posts revealed that employees in product and program management roles were among those affected, the report stated.

The layoffs impacted multiple teams across various geographical locations. However, Microsoft has declined to disclose the total number of employees laid off.

In a statement, a Microsoft spokesperson said, "Organisational and workforce adjustments are a necessary and regular part of managing our business. We will continue to prioritise and invest in strategic growth areas for our future and in support of our customers and partners.”

 

A spate of layoffs at Microsoft

In June this year, Microsoft laid off more than 1,000 employees across different businesses. Many of the layoffs occurred within the strategic missions and technologies divisions. These specialise in offering Cloud software and server rentals to niche industries such as telecommunications and space companies.

Reports revealed that jobs were cut across the Azure and HoloLens mixed reality divisions.

In January, Microsoft announced nearly 2,000 job cuts in its gaming unit, months after acquiring Activision Blizzard in a $69-billion deal.

During Covid, Microsoft's workforce expanded rapidly. In 2022, the company employed 232,000, according to GeekWire's analysis of regulatory filings and earnings reports. By the end of 2023, its global headcount stood at approximately 227,000.

Tech industry handing pink slips globally

The tech industry is experiencing a significant wave of job cuts, with more than 100,000 employees losing their jobs this year alone, according to Layoffs.fyi, a platform monitoring tech layoffs.

Over 330 companies worldwide have laid off employees in the first half of 2024, including prominent firms like Apple, Google, Microsoft, and Meta.

For instance, Google let go of nearly 200 employees from its core teams in May, primarily affecting engineering positions in Sunnyvale, California.

This move is part of Alphabet’s broader downsizing plan, announced last year, aiming to reduce its workforce by about 6 per cent.

Job-search platform Indeed laid off approximately 8 per cent of its workforce in May 2024, affecting employees primarily in the United States.

This second round of layoffs impacted research and development units, among other teams.

In a separate development, Toshiba revealed plans to reduce its domestic workforce by 4,000 as part of a restructuring initiative, representing 6 per cent of its local staff.

The company plans to move some office functions from central Tokyo to Kawasaki, a city west of the capital.

TikTok, the popular short-video platform, laid off over 1,000 employees globally, impacting operations and marketing teams.

Although TikTok provided limited official explanations, industry analysts speculate the layoffs may be a cost-cutting measure in response to the fluctuating regulatory environment affecting social media giants.

Amazon's layoffs impacted several divisions, including Audible (5 per cent), Prime Video, Twitch (35 per cent or about 500 employees), and the Buy with Prime teams.

Concurrently, Meta, the parent company of Facebook, recently reduced a small segment of its workforce in a restructuring move.

It affected its Reality Lab, which oversees augmented reality/virtual reality headsets, software, and other metaverse-related projects.