The weakening in the economy pushes Microsoft to reduce open jobs in its Security software and Azure cloud business division.
More on the Job Cuts
As per Bloomberg News, the hiring cuts will continue in the foreseeable future. Microsoft declined to comment on which departments and businesses will be affected. The company said it would honor the commitments made in earlier job offers for open roles. It may also make some exceptions for critical job roles.
The hiring slowdown expansion that was disclosed in May also affected the Office, windows, and Teams units. In June, there were inside reports of job cuts in the security business.
Executives communicated the decisions in the group to their team about the latest slowdown. The slowdown impacts the company’s cloud business– a jewel in the crown that was a key source of investor interest, growth, and security software business.
Last year, Microsoft hired Amazon.com Inc’s long-time executive Charlie Bell. Bell was expected to combat hackers and bulk up the Microsoft products. The company considered acquiring Mandiant Inc., a cybersecurity firm. Bell’s ability to bring in new talents has reduced considerably.
In an email statement, the company wants to ensure the right resources are aligned for the right job as it prepares for the new fiscal year. The company will also grow its headcounts in the year ahead, with additional focus on where resources are added.
Earlier in July, Microsoft cut less than 1% of its 180,000 workforces. The customer and consulting solution groups were affected. The move will affect technology later though Microsoft plans to finish the current fiscal with an increased headcount.
Other major tech giants such as Google and Apple Inc. also plan to slow down. CEO Sundar Pichai of Google told his employees that they could expect a hiring slowdown for the remainder of 2022. According to people on Monday, Apple is also planning to slow down recruitment and spending in some divisions next year.
Azure is the No. 2 cloud-based infrastructure provider by Microsoft. It has been trying to narrow the gap with market leaders Amazon Web Services for years. This Microsoft unit’s growth rate is the market’s most keenly watched metric in the quarterly earnings. It will be scrutinized when the results are scheduled for next week’s release on Tuesday.
July 1 marks the beginning of a new fiscal for Microsoft Corp. This month is often a period of planning, assessments, and job cuts with the company reassigning where it wants to focus and invest. Still, the recent pullbacks and plans on hiring are unusual. The fears of mounting inflation, recession threats, Ukraine war, and a lingering pandemic are taking their toll.
