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.
Explaining the situation that forced Microsoft to lay off staff, executives at the company said, “Like all companies, we evaluate our business priorities on a regular basis, and make structural adjustments 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.
Microsoft’s Strategic Missions and Technology group, as well as the Xbox console gaming division, were all impacted by the firing.
Given that the corporation was expected to make $52.4 billion in revenue in the second quarter of this year, but instead generated $51.9 billion, Microsoft is fighting to preserve its profits.
The work-from-home strategy that businesses used during the COVID-19 lockdown had greatly benefited Gates’ company, but now that businesses are returning to the office, demand for its goods and services has fallen, with rising inflation also contributing to the decline.
The value of Microsoft’s shares has decreased by -29.36% year to date, from $336.32 a share to $236.48, reflecting the decline in demand for them in the stock market.
This suggests that investors are avoiding Microsoft’s stock on the stock market, which will cause the company’s market value to drop from $2.53 trillion as of December 31, 2021, to $1.76 trillion as of October 19, 2022.
Over the course of ten months, its market worth was reduced by over $770 billion.